Data centre companies to pay into new Tasmanian local community fund

AI data centre companies expected to pay into new Tasmanian Community Benefit Fund In Short: The Tasmanian government is setting up a community fund that AI data centres will have to pay into if they want to set up in the state. The fund would support local infrastructure and community organisations but how much the operators will have to pay or how it will be enforced is not yet known. What's next? The move comes as community concerns grow over Firmus Technologies' plans for AI data centres in Tasmania. The Tasmanian government says AI data centre companies will be expected to pay into a new community fund designed to ensure local communities receive benefits from any AI developments in their area. Premier Jeremy Rockliff said the Local Community Benefit Fund would support local infrastructure, skills and training, community organisations and initiatives that improve livability and economic participation in communities hosting major developments. Mr Rockliff said Tasmania was well positioned to become a national leader in responsible AI infrastructure, but investment must deliver tangible and lasting benefits for Tasmanians. "AI infrastructure creates jobs, but Tasmanians must benefit further from such investments," Mr Rockliff said. "Our renewable energy, skilled workforce and enviable lifestyle give Tasmania an enormous competitive advantage as the global economy embraces artificial intelligence. We want to use that advantage to attract new investment, create highly skilled jobs and build new industries here in Tasmania. "But we have a simple expectation. If a community hosts a major development, that community should share directly in the benefit." It is not yet clear how the companies will be made to pay or how much they will be ask to contribute to the fund. In announcing the policy today, Mr Rockliff said he would make sure it was enforceable. "We will work through the mechanism, there are examples in other places in the world, including the United States, of how these are applied in terms of the cost to the AI data centre companies and how it's distributed across local communities and so we will take the best advice," he said. Mr Rockliff said the fund requirement would be applied to all projects, including those already approved, and he would like the fund up and running "as soon as possible". Firmus withdraws from multi-billion-dollar stock IPO Firmus, one of the AI data centre companies interested in Tasmania, spectacularly withdrew its planned initial public offering on the Australian Securities Exchange (ASX) last week. Tasmania has been at the heart of the company's push to grow quickly with one data centre currently being built in St Leonards, on Launceston's outskirts, and another approved for Long Reach, near Bell Bay, and another being assessed for Wesley Vale, in the north-west. Firmus recently announced sponsorship deals with three sporting bodies in Tasmania — the Devils AFL team, the JackJumpers and Jewels basketball teams, and Cricket Tasmania. Mr Rockliff said the benefit fund would be separate to any such deals. "There are outside arrangements with sporting organisations, this is separate, this is a direct benefit to local community," he said. It was revealed in parliament last month that six more data centre projects were being explored for Tasmania. The names of proponents are being kept confidential at this early stage. Many in the communities impacted by data centre developments and proposals have raised concerns about energy and water usage and questioned what benefits they would receive. An EMRS poll conducted in September found the majority of Tasmanians are not keen on AI data centres being built in the state. The promise of new renewable energy infrastructure being funded by Firmus has been seen as one benefit to communities but a submission made by Firmus to the current federal joint select committee on AI revealed its Tasmanian data centres may be powered with renewable infrastructure based interstate, rather than locally. Firmus has long said it will build 2 megawatts of new renewable energy generation for every 1 megawatt it uses across new data centres planned for Launceston, Long Reach and Wesley Vale. The company is currently negotiating with Hydro Tasmania to secure 444MW of power for its centres, which would make it the largest power user in the state. More guidelines for data centre operators Mr Rockliff said the establishment of the new community fund was one part of the government's approach to AI and data centres, in part reflecting issues raised during a parliamentary inquiry. Under the new approach operators would need to: - Pay their own way, meeting infrastructure and network costs associated with their development - Help grow Tasmania's energy supply, supporting new renewable generation and additional energy capacity - Locate in appropriate industrial precincts, away from urban areas - Protect Tasmanian consumers, ensuring water and power demand does not compromise supply security and does not raise costs for other users - Contribute to the Local Community Benefit Fund - Publicly report their water and energy use each quarter