Firmus' IPO may have flopped but one state leader still sees 'opportunity'

AI data company Firmus's much-anticipated attempt to go public last week turned into a total bust when it failed to attract investors.

Some might say it reflects badly on the company, but co-founder Oliver Curtis felt differently, reportedly blaming Australians' "dim views" on risk-taking.

But it appears there's at least one prominent Australian who has confidence in Mr Curtis's venture — the Premier of Tasmania, Jeremy Rockliff.

Asked at a press conference earlier this week if he still believed in Firmus's potential, given investors clearly didn't, Mr Rockliff did not appear fazed.

"Firmus, as I understand it, are still committed to Tasmania and that's good news. We welcome investment," he told reporters.

That's probably a relief for Mr Curtis, given the island state is at the centre of his plans to build his data centre empire; a concept Mr Rockliff appeared to embrace when he posed with Mr Curtis and co-CEO Tim Rosenfield at their St Leonard's facility last year.

That oft-used photo even appears in Firmus' promotional material.

But only a minority of the Tasmanian population seem to be welcoming investment in this particular form.

The Greens, perhaps unsurprisingly, have long been on the "we're concerned about data centres" bandwagon.

The party that's fought off dams, wind turbines and the stadium (unsuccessfully) was unlikely to fully embrace major infrastructure that consumes enormous amounts of energy and potentially water (if its water cooling system doesn't upscale) with questionable community value.

Even Labor, whose position on things can be hard at times to pinpoint, has come out demanding the government ensure data centres benefit communities.

Labor's spokesperson for innovation, artificial intelligence and the digital economy, Janie Finlay, accused the premier of backing himself into a corner.

"Data centres and AI infrastructure must be able to demonstrate genuine, ongoing benefit to Tasmania and bring new energy projects with them, built here in Tasmania,"she said.

Perhaps they've read the tea leaves or at least EMRS's poll, which found most Tasmanians oppose data centres.

But the government clearly isn't oblivious to how Tasmanians are feeling either.

Devil in the detail for community fund

On Wednesday morning, the premier announced the government would establish a local community benefit fund so that communities where data centres are built benefit.

The idea behind it is that the companies will pay into the fund, which will support local infrastructure, skills and training, community organisations and initiatives.

"If a community hosts a major development, that community should share directly in the benefit," Mr Rockliff told reporters.

Although he couldn't detail how he'd make them pay or how much they'd pay.

Labor was sceptical about how he'd enforce it.

While the Greens were cautiously optimistic that the government was "looking at something that is potentially genuinely leading, and in Tasmania's interest".

"The devil will be in the detail on exactly how the scheme will work," Greens information technology spokesperson Tabatha Badger said.

"What AI companies are expected to pay, how the funds are allocated and what role the community gets to have are all significant unknown details."

The University of Tasmania's Professor Richard Eccleston viewed it as a "really important step in the right direction", pointing to the fact that "data centres done right" are incredibly profitable, but that often isn't felt in the local communities.

"They're really capital intensive; they generate a lot of revenue and profits, but unless we have a specific approach to capture those there aren't that many benefits for hosting them," he said.

Firmus, for its part, welcomed the initiative, agreeing the communities should benefit from AI and data infrastructure projects.

It said it is currently developing a national "Firmus local futures program, which includes community grants".

And let's not forget its decision to sponsor local sport teams the Devils, the JackJumpers, the Jewels and Cricket Tasmania.

The premier has clarified that that will not count towards their contribution.

Another key question not answered by the government is who will be in charge of deciding how the fund is distributed and what the parameters will be.

If the government is in charge, can it resist turning it into another pork-barrelling opportunity?

Local council planners saddled with approvals

But back to data centres. The argument is messy.

People's fear of AI, the environmental concerns, concerns about the impact on local communities, and planning questions are mixed in together, and the result is rarely nuanced.

It's no wonder councils would rather refer upward.

Councils, remember, are made up of Joe Blow next door and Mary from the bakery, not planning experts.

Understandably, they are feeling overwhelmed about making a decision on new, complex, significant infrastructure that most of the people who elected them are not too keen on.

But their pleas to take data centres out of the realm of the local planning system have yet to bear fruit, although the state planning office has requested information from Firmus in relation to assessing its Wesley Vale data centre proposal.

The government is insisting the "robust" planning system can handle it, despite the fact that the planning system has never encountered anything of its kind until now.

Professor Eccleston also believes that given the scale of the investments and their impact on the energy system, a major project pathway would probably be more appropriate.

But Wednesday's announcement appears to be the government's way of showing that it doesn't intend to hand over Tasmania to data centres, as some may fear.

It had already listed community benefits in its statement of expectations for data centres, and this concept follows through on that.

As an aside, one could argue, as the Greens are doing, that if the government were taking data centres seriously, then former technology minister Madeleine Ogilvie wouldn't be on the parliamentary inquiry looking at them.

Given her former role, she would be better placed as a witness, not an interrogator.

Not to mention her avid love of AI, which she uses prominently in her social media content — both advocating for it and using it.

To be fair to the government, though, the AI rise has been fast and, like the rest of the country, it's playing catch-up.

On Wednesday it gained some ground, at least when it comes to trying to buy the industry a social licence

"I see an opportunity when it comes to AI data developments," Mr Rockliff told reporters.

"I see an opportunity that presents for Tasmania, and I see a need to build that connection and trust with local communities as well."

As for Firmus, it's proven that while it might be able to buy a space on every Tassie team's uniform, it can't buy Tasmanians' hearts.

Nor Australians' wallets.