‘Reluctant’ approval for Tasmanian datacentre sets marker for national battle

Reluctant approval for Tasmanian datacentre

Wanderstayfinder.com – A small Tasmanian council chamber became the unlikely stage for a national regulatory showdown when the George Town council voted 6-1 on Tuesday to permit a 288-megawatt AI facility at Long Reach. The reluctant approval for Tasmanian datacentre development came just one day before Prime Minister Anthony Albanese confirmed that national cabinet had agreed to legislate mandatory standards for large-scale datacentres beginning early next year. The site, north of Launceston, once housed the Gunns Pulp Mill beside the Tamar River, and Australian developer Firmus now holds planning consent to build on the former industrial footprint.

Community Backlash and a Petition of Nearly 6,000 Signatures

Months of opposition preceded the vote. Resident Anne-Marie Bastian launched a Change.org petition that drew close to 6,000 signatures demanding the project be halted, while more than 300 written submissions were lodged with the council against the application. Many questioned energy consumption, the wider implications of artificial intelligence, and the absence of commonwealth-level oversight. The council’s own agenda document acknowledged that several of those concerns fell “outside the scope” of its statutory planning role.

The Tuesday meeting drew a packed public gallery. Speakers queued to voice objections, and a recurring refrain was that the council should simply wait until federal rules take effect before deciding anything.

“Last week on national TV, prime minister Anthony Albanese announced a landmark policy setting out new mandatory standards for large-scale AI datacentres to be built. Tasmania is part of Australia, and we deserve to be protected too,” said Lorraine, a local resident who addressed the chamber.

The Council’s Legal Bind and the Developer’s Response

Councillors acknowledged the frustration in the room but maintained they were bound to apply planning legislation as it currently stands. They could not, in their view, suspend a decision pending future federal legislation that had not yet been enacted.

“This is probably one of my hardest decisions while I’ve been on council in the last four years,” said councillor Heather Ashley. “We’ve talked about this a lot … but as a planning authority, we have guidelines and we can’t go over those guidelines.”

“But as has been said a hundred times, it’s a decision that we have to make under planning rules and regulations. So that’s it,” added councillor Winston Mason, noting that every member had been “very reluctant” to cast the vote.

Those who objected at the meeting have 14 days from Tuesday to lodge a formal appeal. Bastian, who initiated the petition, told Guardian Australia that multiple residents were expected to challenge the decision.

“There’s plenty in the community that are pissed off right now. Their concerns were totally dismissed. The council totally copped out.”

Canberra’s Next-Day Framework Announcement

The following day, Albanese confirmed after national cabinet that the government would introduce legislation establishing a nationally consistent regulatory framework setting minimum requirements for large datacentres. The communique stated the rules would cover energy use, water consumption, and land-use planning, developed in consultation with states and territories. Crucially, it emphasised that the federal legislation “will be designed to complement, not duplicate” existing state and territory planning and approval processes.

The timing — landing the day after the George Town vote — sharpened the sense that the council had been forced to act in a regulatory vacuum. Project advocates argued that waiting for federal rules would have left the application in indefinite limbo, while opponents saw the sequence as evidence that local governments are being asked to shoulder decisions that properly belong at the national level.

A Firmus spokesperson welcomed the consent and said the project would now move into design, procurement, and construction-planning phases. Co-founder Oliver Curtis stated that the company supported the national expectations for datacentres and the standards underpinning them.

“Operators should be able to demonstrate how they are supporting the energy system, using water responsibly, choosing appropriate locations and delivering real benefits to the communities that host them.”

Frequently Asked Questions

When do the new federal datacentre standards take effect? Albanese confirmed the legislation will be introduced from early next year, though the exact commencement date was not specified in the cabinet communique.

Can the George Town council’s decision be overturned? Objectors have 14 days from the Tuesday vote to lodge a formal appeal. Bastian indicated multiple residents intend to challenge the approval.

What does the federal framework cover? The communique names energy use, water consumption, and land-use planning as the core areas, to be developed in consultation with states and territories.

Will the new rules replace state planning processes? No. The cabinet communique explicitly states the legislation “will be designed to complement, not duplicate” existing state and territory planning and approval processes.