Tasmania's environmental regulator is urging a tribunal to hear its concerns, after learning the operator of a recently approved AI data centre wants to use hundreds of diesel generators far more often than it originally disclosed.
Earlier this year, the George Town Council approved a Firmus Technologies proposal to build a 288-megawatt data centre in the state's north, after the Tasmanian Environmental Protection Authority (EPA) determined it did not need to make an environmental assessment.
The data centre's approval was subject to conditions, including that Firmus could only run the 276 on-site diesel generators at limited times, such as during emergencies or routine inspections.
Firmus, however, has appealed that condition through the Tasmanian Civil and Administrative Tribunal (TASCAT), arguing it wanted to use the generators "for limited augmentation of the mains electricity supply to offset curtailment, manage energy security and maintain operational reliability during periods of energy market stress".
Tasmania's Environment Protection Authority (EPA) board has now applied to TASCAT to join as a party to Firmus's appeal.
EPA likely to have assessed project if proposed use was higher
In its October 7 submission, seen by the ABC, the board said it was originally told the generators would be used "just for emergency use in the event of a power failure", and would not be used during normal operation other than for scheduled weekly exercise runs of less than two hours, annual load tests, and utility outage events.
The board said Firmus's recent appeal showed it planned on using the generators in more circumstances than it thought.
"That variation, if part of the original proposal, would likely have resulted in the Board making a different decision in relation to whether to assess the proposal," the board said.
It pointed out that if Firmus's appeal against the condition around generator use is upheld, it could allow it to subvert EPA processes it likely would have been subjected to "if the proposal had been accurately presented".
"And further, if upheld, the appeal has the potential to permit an activity in circumstances where the environmental risks have not been properly assessed, which may result in environmental harm including nuisance … necessitating the EPA taking enforcement action in respect of it," it said.
The EPA board said it would not comment on matters currently being considered by TASCAT, and Firmus declined to comment on the matter.
A state government spokesperson said it was supportive of private investments that created jobs and economic benefits but "projects should use resources responsibly and engage transparently with communities".
Greens MP Tabitha Badger said she welcomed the EPA raising concerns and pointing out the potential for the generators to breach acceptable limits and for noise to carry across the river.
Backflip on energy generation
Meanwhile, a submission made by Firmus to the current federal joint select committee on AI reveals its Tasmanian data centres may be powered with renewable infrastructure based interstate, rather than locally.
Firmus has long said it will build two megawatts of new renewable energy generation for every 1 megawatt it uses across new data centres planned for Launceston, Long Reach and Wesley Vale.
Firmus's co-CEO Tim Rosenfield has previously implied that new capacity would be built in Tasmania.
"[Firmus investment] will add net new energy to Tasmania that will end up being able to be exported across Marinus [Link], which is a good thing we feel," he told ABC Mornings in July.
But according to Firmus's recent submission, which it engaged Oxford Economics Australia to prepare, those renewable projects are "not necessarily sited within Tasmania".
Firmus declined to comment.
The company is currently negotiating with Hydro Tasmania to secure 444MW of power for its centres.
A Hydro Tasmania spokesperson said the new renewable projects it was considering as part of its assessment of Firmus's request "are all located in Tasmania, in line with the Tasmanian government's expectations that data centres in Tasmania support new on-island energy generation".
A Tasmanian government spokesperson said it expected developers to unlock new renewable energy generation projects in Tasmania to support their demand.
