Quantum DC pauses Adelaide Hills data centre plan amid community opposition

Quantum DC has put its proposed 1,200-megawatt AI data centre at Tungkillo on hold following protests and opposition from local residents. The Adelaide Hills project's pause comes as South Australia prepares legislation to regulate the industry.

The company announced the pause on 12 November. A separate proposal beside the Cooks River in southern Sydney has also been abandoned following community opposition.

SA artificial intelligence minister Chris Picton said the Tungkillo decision demonstrated the need for legislation giving the government regulatory control over data centres. He said energy consumption, water requirements and land use needed to be managed. The government also criticised the developer's consultation.

Data Centres Australia chief executive Belinda Dennett said developers faced a tension between consulting residents early and being able to provide detailed information about designs, power sources and water use. The industry body does not represent Quantum DC.

Dennett said South Australia attracted interest from operators and investors, but they wanted greater policy certainty. She said the absence of federal rules was creating uncertainty across the states.

The Liberals, Greens and One Nation welcomed the Tungkillo pause. The Greens called for a moratorium, while One Nation SA leader Cory Bernardi sought a halt until a parliamentary inquiry was completed.

Those three parties secured an upper house inquiry into data centres on 11 November, without Labor's support. Opposition leader Ashton Hurn also argued that data centres should be examined by the state's Royal Commission into Artificial Intelligence, whose terms of reference exclude them.