Tasmanian government requires AI data centres to fund local communities

The Tasmanian government announced a statement of expectations requiring AI data centre developers to contribute to community benefit funds.

Premier Jeremy Rockliff and Industry Minister Felix Ellis stated that companies must pay a fee of $3,000 for every megawatt of contracted energy they use each year. These funds will be managed by the companies themselves under transparent governance arrangements that require public reporting. The policy targets the growing data centre sector in Tasmania, a state in Australia.

For example, the company Firmus will contribute $312,000 annually from its 104MW facility at St Leonards. The company also has plans for a 288MW centre at Long Reach near Bell Bay and a 40MW centre at Wesley Vale in the north-west of the state. The government intends for these expectations to be binding, meaning developers who do not follow the rules cannot proceed with their projects. Minister Felix Ellis said the rules exist alongside existing planning and environmental requirements.

While the government previously suggested a single fund, the new details clarify that each proponent will run its own fund to invest in local community groups and organisations. The move comes as the state faces pressure to regulate the industry due to concerns over water and energy usage. Energy Minister Nick Duigan said developers must partner with new renewable energy projects, potentially through Hydro Tasmania, which can act as an aggregator to provide firmed energy products.

Technology advocates and local start-up hubs welcomed the plan, stating it helps build trust and provides opportunities for local residents to gain skills in the technology sector.