AI data centre company starts development work without a permit

In short:

Latrobe Council is assessing whether Firmus Technologies has conducted illegal works on the site of its yet-to-be-approved project in north-west Tasmania.

Firmus says the works underway do not require planning approval.

What's next?

Firmus has agreed to stop work while the council undertakes assessments.

AI infrastructure company Firmus Technologies appears to have conducted illegal work at its site in north-west Tasmania, a local council says.

Firmus submitted a development application to build a 52-megawatt AI data centre in Wesley Vale at the old paper mill site, but Latrobe Council has deferred making a decision — instead asking the Tasmanian government to assess it as a major project.

But now, it seems Firmus has begun work without a permit.

"We're concerned that some of the works may be occurring beyond the scope of the approved forest practices plan for the site," Latrobe Mayor Peter Freshney said.

"If it's outside of that then there'll be stop work issued," he said.

He said Firmus had agreed to cease work while council conducted further assessments.

"We're seeking to understand and confirm whether or not that work is illegal,"he said.

Cr Freshney said the approved forest practices plan allowed activities such as tree felling, stump removal, mulching and weed suppression.

"What we're seeing now though, I would suggest, is excavation to an extent that is not within the approved plan," he said.

Cr Freshney said there were transportable buildings, piles of dirt and blue metal on site.

In a statement, a Firmus spokesperson said the works were part of general site maintenance, separate from the development application.

"These activities do not require planning approval and will take approximately four weeks to complete," the spokesperson said.

"No main works associated with the broader projects will commence until all required approvals are in place."

Issue causing 'further angst' in community

Cr Freshney said Firmus had committed in writing to working with the council.

"I suggest undertaking work without permits isn't consistent with that written commitment," he said.

"We will make this a priority and we expect the proponent to work with us to put this to bed and to ensure our community and our councils are respected and the processes are adhered to.

"This issue has now caused even further angst in our community, which is detrimental to community health and wellbeing, but also concerns held more broadly around data centres, evolving technologies and the like.

"Proponents more broadly need to be working with planning authorities and local government."

Greens MP Tabatha Badger praised the council for intervening.

"Despite the lack of AI infrastructure guardrails, there are still laws in the state that must be complied with," she said.

"If Firmus is indeed pushing ahead at Wesley Vale before having the right approvals, what else will they get up to?

"Do Firmus think just because they sponsored the Tassie Devils they can get a free kick?"

Planning minister considering major project request

Councils and residents have raised concerns that the planning framework does not allow councils to adequately assess AI data centres.

In coming to a decision about Firmus's 288-megawatt facility at Long Reach in northern Tasmania, George Town Council's planners told residents their concerns about issues such as power and water use fell outside of its scope.

Those limitations led Latrobe Council to ask Planning Minister Kerry Vincent to consider assessing the Wesley Vale proposal as a major project.

Premier Jeremy Rockliff has previously rejected the idea, stating the current planning process was adequate.

But residents in the Wesley Vale area this month received a letter from Planning Minister Kerry Vincent stating he was considering the request.

"As the proposal was referred from the Latrobe Council and not the proponent, Firmus Technologies, there is still further information to be provided before I can further consult with you on this matter," he wrote to residents.

"After a complete major project proposal has been provided to government, further consultation will occur, including providing you with a copy of that major project proposal and allowing 28 days to provide any comments."

Firmus announced last week it wanted to build a research and development facility at Wesley Vale, which would go through a separate approval process to the proposed AI data centre.

"The facility will be used to test new battery energy storage and power management technologies, with a particular focus on reducing reliance on conventional diesel backup generation," the company said in a statement.