Home Tasmania AI turns on itself as Tasmania’s data-centre fight escalates

AI turns on itself as Tasmania’s data-centre fight escalates

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A representative image of a data centre.

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Tasmanian community group has used artificial intelligence to make a protest song attacking the expansion of AI data centres, as opposition to the industry grows from petitions and council meetings into parliamentary and legal challenges.

Tas Power Democracy has released Pimpin’ Tassie to the Cloud, a three-minute satirical song aimed at the development of large AI facilities and the Marinus Link electricity and telecommunications connection between Tasmania and Victoria.

“Song and Images: AI-generated. Human-approved. Turning the AI kings’ own tools against them. Lovin’ Tassie,” a frame in the accompanying video reads.

The joke is deliberate. A group campaigning against the infrastructure needed to support increasingly powerful artificial intelligence systems has used generative AI to make its case.

Its chorus draws Marinus Link, government policy and the data-centre industry into the same argument:

“Marinus brings the cable, pollies bring the spin,
Foreign tech giants saying, ‘Let us in.’
Big cable, bill bigger, Tassie getting sold,
Marinus pimpin’ Tassie to the cloud.”

Behind the satire is a dispute that has become much harder for governments to treat as a niche planning issue.

An official Tasmanian House of Assembly e-petition calling for an immediate moratorium on unfinished AI and data facilities closed on Monday with 9,943 signatures. It asks for AI-specific planning rules, public reporting of energy and water use, parliamentary oversight of facilities above 50MW, guarantees around permanent local employment and protections against electricity price rises attributed to data-centre connections.

The Rockliff government has rejected a moratorium. Business, Industry and Resources Minister Felix Ellis told Parliament, “The answer is no; we wouldn’t be seeking a moratorium”.

The government is instead preparing its own expectations for the industry. Tasmania has also established a parliamentary inquiry into AI data centres, with submissions open until September 21, examining issues including resource use, regulation and what economic benefits the facilities will deliver to the state.

The debate intensified last week when George Town Council approved Firmus Technologies’ proposed 288MW AI data centre at Long Reach, on the former Gunns pulp mill site at Bell Bay. The development application attracted 349 formal public representations, raising concerns ranging from electricity and water demand to noise, pollution, bushfire risk and consultation.

The council’s planning officers had argued that several concerns raised by residents, including energy policy and national regulation of artificial intelligence, fell outside the matters council could consider under the Tasmanian Planning Scheme.

That distinction is central to the emerging political argument. Communities are being asked to respond to developments through planning processes that can assess individual sites, while many of the questions being raised concern the combined effect of multiple facilities on electricity generation, transmission, water, prices and infrastructure.

Firmus is also building a 104MW AI facility at St Leonards near Launceston and has proposed another 52MW facility at Wesley Vale. If its three Tasmanian projects proceed, the company is expected to become the state’s largest electricity user.

Firmus argues its investment will bring substantial economic benefits. The company says its Bell Bay operation would employ more than 115 full-time workers once operational, in addition to hundreds of jobs during construction. It says roles would include technology operations, maintenance, engineering, energy management, security and administration.

Its position matters because the protest song caricatures data centres as consuming large quantities of Tasmanian resources while providing few permanent jobs. The eventual employment, taxation and infrastructure benefits will therefore be an important test of the industry’s case.

Tas Power Democracy has also tied the data-centre expansion to Marinus Link.

That connection requires some care. Marinus Link was not conceived as an AI data-centre project. The two-way undersea electricity connection was developed to increase energy trading between Tasmania and Victoria, allowing Tasmania to import power when advantageous and export hydroelectricity into the National Electricity Market when needed.

Stage one will provide 750MW of electricity transfer capacity, with a possible second 750MW cable to follow.

But the relationship between Marinus and the emerging digital industry is no longer simply an argument made by opponents.

Marinus Link says its fibre-optic cables will increase internet capacity between Tasmania and Victoria 150-fold. Its own material identifies “data and digital-based industries” among the industries that could grow in Tasmania and says Marinus Link will help make that possible.

Firmus has been more explicit. In material promoting Project Southgate, the company said its Tasmanian AI campus could anchor new digital industry to the state’s renewable electricity system, “supporting the business case for major projects like Marinus Link”.

That does not mean Marinus is being built to power Firmus. It does mean the economics of Tasmania’s electricity network and the ambitions of its AI industry are becoming increasingly connected.

That relationship has already prompted questions from energy experts about whether large new Tasmanian loads change the assumptions behind exporting electricity to the mainland. Firmus has previously outlined plans for several hundred megawatts of data-centre capacity in northern Tasmania, while Marinus Link argues that new industrial electricity demand strengthens the need for greater interconnection rather than weakening it.

The infrastructure fight is also moving ahead despite continuing opposition.

The Tasmanian Civil and Administrative Tribunal on August 18 upheld the planning permit for the North West Transmission Developments, the network upgrade needed to connect Marinus Link into Tasmania’s electricity system. An opponent has since indicated an intention to appeal to the Supreme Court on questions of law.

On Monday, August 31, TasNetworks issued contractor GenusPlus with a formal Notice to Proceed for construction of Stage 1 of the North West Transmission Developments. Genus told the ASX that construction could now begin, with the overall contract worth about $750 million and completion scheduled for 2029.

Tas Power Democracy says an urgent Supreme Court stay application has been lodged and that a further hearing is due on September 4. Those details have been put forward by the campaign group and the substantive Supreme Court appeal has yet to be determined.

TasNetworks maintains the transmission development has gone through the required planning and environmental processes and is needed to strengthen Tasmania’s network, connect additional renewable generation and support the Marinus interconnector. Federal environmental approval was obtained earlier this year, while the Australian Energy Regulator has also approved revenue for the first construction stage.

The Tasmanian dispute is increasingly part of a national one.

Seven councils in Melbourne’s west have recently coordinated their advocacy over data centres, while several Victorian councils have separately called for temporary halts on new approvals until clearer planning and infrastructure rules are developed. Hume, Melton, Brimbank and Maribyrnong have all backed moratorium calls of some form.

The Albanese government is now developing nationally consistent mandatory standards for large data centres covering electricity, water and land use. The proposed rules include requirements for major facilities to underwrite new electricity supply and meet their connection costs so households are not left paying for additional infrastructure. National Cabinet agreed last week to work towards the framework, with legislation expected in early 2027.

A separate Senate inquiry into artificial intelligence and data centres closes submissions on September 1 and is due to report in November.

That makes the timing of Tasmania’s dispute particularly awkward. Governments are approving or assessing projects now under rules that federal and state policymakers themselves acknowledge need updating.

For Tas Power Democracy, the protest song reduces that complicated argument to a much simpler refrain: “We’re not your battery, we’re not your cloud.”

Whether Tasmanians agree with the group’s diagnosis is another question. What is becoming clearer is that the physical infrastructure behind artificial intelligence, where it is built, how much electricity it consumes and who pays for the systems supporting it, is rapidly becoming a political issue in its own right.


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