‘Fear developing in a vacuum’: AI data centre concerns hit SA town
Plans for multibillion-dollar Artificial Intelligence infrastructure sites have quietly popped up in regional South Australia, sparking concerns from locals. Hundreds of jobs are expected to be generated.
Locals are voicing their concerns that a major AI data centre proposal in Tailem Bend has popped up without community consultation, as a petition to keep data centres out of South Australia gains momentum.
In May, AI infrastructure company Firmus Technologies purchased land in Tailem Bend and Port Augusta with the intent of building AI computing infrastructure worth many billions of dollars.
A Firmus spokesperson told InDaily the regional sites would “support the type of grid load that is well suited to AI factories”, and be situated “well away from residential or light commercial areas that would be unsuited to industrial buildings”.
The South Australian projects were expected to be four times bigger than the size of Firmus’ George Town project in Tasmania, which would draw approximately 288 megawatts, according to Firmus.
Coorong District Council acting mayor Jonathan Pietzsch said locals were yet to be consulted by the state government or Firmus, which was contributing to negative speculation on social media around the AI infrastructure.
He also said he first found out about the data centre proposal after being contacted by the media.
“The community response has been that they’d like more information. There’s a lot of speculation around what’s involved and until we hear from those involved and what style of data centre they’re building, we don’t know,” Pietzsch said.
“We haven’t heard anything from the state government, and I think this is an opportunity for them to step up.
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“Successive state governments of both colours have taken away decision making from local communities. What we’re seeing here is concern and fear from locals developing in a vacuum.”
Pietzsch said water usage, power usage and noise complaints had been the main concerns circulating among locals, with a recent United Nations study estimating the resource demand needed for AI data centres could equate to the water use equivalent of 1.3 billion people by 2030.
Data centres have been categorised as essential infrastructure by the state government, meaning it bypasses local council planning, with Pietzsch saying the council has “no control and zero say”.
In September 2025, amendments were made to the Planning, Development and Infrastructure Act to allow data centres to be approved through the essential infrastructure pathway.
Applications for data centres must be submitted with advice from SA Water that there is sufficient water supply to meet requirements and a certificate from the Technical Regulator confirming it complies with the requirements of the state’s power system.
A state government spokesperson said the government would continue to work alongside Firmus and other proponents to explore AI data centre opportunities in SA.
“The state government is developing key principles and a coordinated cross-government approach to consider and manage all large-scale data centre proposals in South Australia,” the spokesperson said.
“Our state is strengthening its position as a leader in innovation and technology, and data centres are a significant opportunity for long-term investment in future jobs and capabilities.”
Pietzsch raised concerns about electricity usage to power the sites, saying Tailem Bend had an “unreliable electrical grid” with frequent power outages.
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“There needs to be an opportunity for Firmus to have a conversation with community and say this is what we’re proposing, and this is how we’re going about it,” he said.
“We need to get a handle on exactly what’s being talked about so that we can make plans and deal with it appropriately.”
A Firmus spokesperson said the company was “committed to engaging with local communities” during the development approval process for both the Tailem Bend and Port Augusta sites.
The spokesperson said the South Australian projects would use liquid cooling systems “designed to minimise water use”.
“This closed-loop system dramatically reduces water consumption compared to traditional data centres, which typically rely on evaporative cooling towers,” the spokesperson said.
“Climatic conditions for our South Australia sites are still being modelled, and forecasting will be disclosed once that is complete. However, the engineering principle is the same as in Tasmania – designed to minimise water use and respond to local conditions.
“Firmus also expects its energy demand to support investment in new renewable generation and firming capacity, including battery systems. Further details will be provided as commercial and regulatory processes progress.”
Firmus expected a minimum of 400 direct full-time roles to be created at each of the two sites as they progress.
Meanwhile, an online petition calling for AI data centres to be kept out of SA has amassed 4388 signatures less than two weeks after it was first launched. The petition outlines concerns over droughts in SA and access to water needed for the sites.
The petition followed an announcement earlier this month that an 800MW AI data centre would be built by IREN Limited in the state’s Mid North town of Bundey, generating up to 500 jobs.
IREN co-founder Daniel Roberts said the company was looking forward to partnering with state government to expand domestic access to AI infrastructure.
“South Australia offers what AI infrastructure at scale requires: abundant clean energy, the connectivity to serve the APAC region, and a State Government that understands the opportunity and is acting on it,” Roberts said.
“The Bundey campus is able to serve global and regional AI demand, as well as South Australia’s own growing need for AI compute.”
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