AI company Firmus to become Tasmania’s biggest power user if three planned sites come to fruition

Singapore-based Firmus Technologies plans to build three “AI factories” in Tasmania, potentially becoming the state’s largest power user. Energy Minister Nick Duigan told budget estimates the facilities would require approximately 400 megawatts, roughly 20% of Tasmania’s current energy use, across sites in St Leonards, Bell Bay, and Wesley Vale.

How much power will Firmus AI factories use in Tasmania?

Firmus Technologies will require about 400 megawatts in total to power its three proposed sites, according to Energy Minister Nick Duigan. An energy consultant noted this amount represents roughly 20% of the state’s current energy consumption, exceeding the combined demand of all Tasmanian households.

The company has already signed a contract with state energy company Aurora for 104 megawatts of hydro energy to power the St Leonards facility. The Tasmanian government stated this specific contract will not impact power prices for residents.

The Power Gap: Firmus vs. Boyer Paper Mill

The scale of Firmus’s energy acquisition has sparked political debate. Greens MP Tabatha Badger questioned how Firmus secured 104 megawatts for one site while the Boyer Paper Mill near Hobart was unable to secure an additional 45 megawatts for electric boilers.

Minister Duigan dismissed the comparison during budget estimates. He stated the issue with Boyer is a “discussion around the pricing of power” rather than a lack of available energy.

Where are the AI factories being located?

Firmus is establishing a footprint in three primary Tasmanian regions. The first factory in the Launceston suburb of St Leonards is expected to be operational early next year.

Two additional sites are currently in the planning phase:

• Bell Bay: Firmus has submitted a development application to the George Town Council for the old pulp mill site.
• Wesley Vale: The Latrobe Council confirmed it received a development application for a proposal involving part of the old paper mill site.

Firmus stated its site selection is based on transmission connectivity, planning pathways, and access to power. The company is also planning similar facilities in Sydney, Melbourne, Perth, and Canberra.

Will AI infrastructure jeopardize the energy transition?

Greens MP Tabatha Badger expressed concern over the “enormous” power requirements, asking what happens if the state faces an energy shortage. She described the current environment for AI factories as the “Wild West” due to a lack of state-specific legislation.

The federal government’s National AI Plan, released in December last year, sets expectations that data centres should not increase energy prices and should instead bring new renewable energy online. Firmus co-CEO Oliver Curtis told 936 ABC Hobart in March that the company intends to support the build-out of new renewable projects.

How does the new submarine cable impact Tasmania’s digital economy?

Firmus is partnering with SUBCO to install a new submarine fibre optic cable connecting Tasmania to mainland Australia. This marks the first new cable of its kind in over 20 years and is expected to be operational in the second quarter of next year.

Russell Kelly, CEO of TasICT, said the cable provides the necessary compute power for various sectors to innovate and grow. He described the project as a “bridge across Bass Strait” that will increase the state’s overall digital capacity.

However, Mr. Kelly noted that AI companies must be transparent with the public to gain a “social licence,” as general trust in AI remains low.

Frequently Asked Questions