For a place better known for rugged coastlines and some of the cleanest air in the world, Tasmania may soon be adding AI to the list.
A company called Firmus Technologies is betting billions on exactly that, with plans to turn Northern Tasmania into what it describes as the world‘s first AI Factory Zone.
The Singapore-based (but Australian-founded) AI infrastructure company wants to build a network of giant AI computing facilities across the state’s north.
If all three proposed sites go ahead, the project could eventually consume up to 15 per cent of Tasmania’s entire electricity supply.
That would make Firmus the state’s single largest power user.
The first site is already under construction near Launceston and is expected to house around 36,000 Nvidia GPUs. Two more facilities have been proposed at Bell Bay and Wesley Vale, both on former industrial sites.
Together, they form part of Project Southgate, Firmus’ vision for a renewable-powered AI hub.
Tasmania wasn’t chosen by accident. The state’s cool climate reduces the need for water-intensive cooling systems, while its hydro and wind-powered grid offers access to renewable energy at scale. Firmus has already secured a 104-megawatt power deal with Aurora Energy and plans to market what it calls “Green AI” computing.
Supporters see a major economic opportunity. Critics see a potential strain on the state’s energy resources.
The prospect of a single company consuming 15 per cent of Tasmania’s electricity has sparked concern among environmental groups, community advocates and the Tasmanian Greens, with questions already being asked about future power prices, grid capacity and who ultimately benefits from the state’s renewable energy.
Those concerns have reached Parliament, with calls for greater transparency around the project’s energy agreements and a Senate inquiry expected to examine the broader environmental impact of large-scale AI infrastructure.
Whether Project Southgate becomes a blueprint for sustainable AI or a flashpoint in Australia’s energy debate remains to be seen.
