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—Launceston, Bell Bay, and Wesley Vale—becoming the state’s largest power user if all sites are approved, with operations relying on hydroelectric energy. Concerns have arisen over power allocation, as the company has already secured 104 MW for its St Leonards facility, raising questions about energy distribution fairness for other industries.
Singapore-based Firmus Technologies is expanding its AI infrastructure in Tasmania, with plans to construct three factories across the state. The company has already begun building an AI factory in Launceston’s St Leonards suburb, set to operate early next year, using data center infrastructure and graphics processing units to produce AI tokens for tools like ChatGPT. Firmus has submitted development applications for two additional sites: Bell Bay, north of Launceston, and Wesley Vale in the state’s northwest. The Bell Bay site would reuse part of the former pulp mill location, while Wesley Vale is under review by Latrobe Council. Firmus confirmed its interest in these regions but did not disclose whether it had acquired the sites, stating site selection depends on power access, transmission connectivity, and government policy alignment. Tasmania’s Energy Minister, Nick Duigan, revealed the plans during budget estimates, noting Firmus aims to leverage the state’s cold climate, which reduces cooling demands for AI operations. The company has already secured a 104 MW hydroelectric power contract with state energy provider Aurora, ensuring no impact on residential electricity prices. However, critics question how Firmus secured such a large allocation while other industries, like the Boyer Paper Mill near Hobart, struggle to obtain additional power. TasICT, a local tech advocacy group, supports AI infrastructure growth but emphasizes the need for transparency to build public trust. Chief Executive Russell Kelly highlighted Tasmania’s digital economy boom, urging companies like Firmus to clearly communicate the benefits of AI to the community. Meanwhile, concerns persist over power distribution fairness, as the state balances industrial demands with existing energy constraints.
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