Tasmania plans community fund contributions from AI data centres

AI data centre operators in Tasmania would be expected to contribute to a fund for host communities under a state government plan. Premier Jeremy Rockliff said the money would support infrastructure, training and community organisations.

The government has yet to determine contribution amounts or how payments would be enforced. Rockliff said he would ensure the arrangement was enforceable and wanted the Local Community Benefit Fund operating as soon as possible. Projects with existing approvals would also be covered.

The fund forms part of a broader government approach that would require operators to cover infrastructure and network expenses, support additional renewable generation and energy capacity, and choose suitable industrial locations outside urban areas. Operators would also need to disclose energy and water consumption quarterly and ensure their demand neither jeopardised supply security nor increased other consumers' costs.

The announcement follows concerns from communities about data centres' resource demands and the benefits available to residents. Firmus Technologies is building a centre at St Leonards, has approval for another at Long Reach and has a Wesley Vale proposal under assessment.

Firmus is negotiating with Hydro Tasmania for 444MW of power, which would make the company Tasmania's biggest electricity user. Its submission to a federal parliamentary committee indicated renewable infrastructure supplying its Tasmanian centres could be located interstate rather than within Tasmania.

Rockliff said contributions to the fund would be separate from sporting sponsorships. University of Tasmania Professor Richard Eccleston, director of the Tasmanian Policy Exchange, welcomed the proposal but questioned whether payments would be compulsory. He also raised the challenge of directing funds towards training, innovation and industries offering lasting employment.