Major data centre proposal leaves SA council ‘in the dark’
A regional council has pushed for clarification over a major data centre proposal as questions mount over local rate treatment and water usage.
A major data centre proposal has a rural council seeking assurances the infrastructure project will not get a rates exemption as questions mount over water use and noise pollution.
These are among several concerns to be placed under the spotlight when infrastructure start-up Firmus Technologies formally applies for a 1300- megawatt data centre in South Australia’s mid north.
The proposal will be one of the company’s biggest in Australia, with plans to build a 288MW data centre in Tasmania’s Bell Bay and a 1000MW factory in SA’s Tailem Bend.
Both South Australian developments were supported by a 12-year wholesale energy supply agreement with Gunvor Group for 600 megawatts a year, allowing Firmus to reduce electricity consumption during periods of wholesale market stress.
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The Port Augusta City Council has sought clarification from the company and state government on the proposal for ten AI data halls, a substation and surrounding infrastructure 4.5 km southeast of Stirling North.
While the development application is yet to be finalised, the report from council did not represent any position on the proposed development.
Instead, the council outlined several “unanswered questions” surrounding the site’s true scale, proximity to infrastructure and potential impacts on road infrastructure.
It also called for clear and absolute assurance that no legislative exemption, concession or reduction in the value of rates would be applied in relation to the development.
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“This includes any exemption that may apply pursuant to the Land Valuation Regulations,” the report said.
Among the concerns is the demand for water, with the company saying its proposed development would use 345 megalitres a year.
During a September community drop-in session in Port Augusta, Firmus said the centre’s closed-loop cooling system would engage more water when temperatures exceeded 35C outside, estimated to be 400 hours a year.
The company said recycled water and rainwater would be used, and ruled out connecting its cooling system to the outback district’s water mains.
As part of the report, Port Augusta City Council sought more clarification on how the proposed water demand would impact existing community, industrial or environmental water needs.
Neither Firmus nor the state government has yet responded to council since the report was tabled at a meeting on October 13.
However, a state government spokesperson said the Infrastructure and Planning Minister Nick Champion would “provide a fulsome response in due course”.
“The Government has no plans to introduce tax or council rates exemptions for data centre developments in South Australia,” they said.
The state has considered data centres “essential infrastructure”, meaning AI development applications fall under the state’s planning minister rather than local councils.
Premier Peter Malinauskas released a data centre strategy in June and planned to introduce new laws to state parliament to regulate the industry.
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