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'So Much Fear Out There': Development Application Lodged for Wesley Vale AI Data Centre

ABC News

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Date Published
26 Aug 2026
Priority Score
2
Australian
Yes
Created
27 Aug 2026, 02:00 pm

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Description

A development application for an AI data centre has been lodged with the Latrobe Council, and the mayor says he will work through it and there's "so many concerns and so much fear out there."

Summary

This report highlights a formal development application for a significant AI data centre in Wesley Vale, Tasmania, revealing critical gaps in local planning frameworks to handle large-scale AI infrastructure. Local leadership argues that 30-year-old planning legislation is not fit for purpose to address the unique demands of frontier AI facilities, particularly regarding water security and resource allocation. The community pushback reflects broader anxieties concerning the rapid expansion of physical AI infrastructure and its impact on essential regional resources like irrigation for food production. While focused on local development, the case underscores the urgent need for updated Australian regulatory frameworks to manage the physical and societal risks associated with the AI transition.

Body

A development application has been lodged by Firmus Technologies for an AI data centre in Wesley Vale in the state's north west.Mayor Peter Freshney tells Leon Compton on Tasmania Mornings that members of the public have 14 days to make a representation to the council about the project.He says he will work through the application, but there's a lot of community concern."There's so many issues, so many concerns and so much fear out there," he says. "That's my real concern. That is the fear that's being generated, the angst that's causing many, many people and people I respect are very concerned about the unknown."Image DetailsLatrobe Mayor Peter Freshney says there's a lot of concern in his community about the proposed AI data centre.(ABC News: Morgan Timms)Program:More from Tasmania MorningsHobart, Wesley Vale, AITranscriptPeter FreshneySo the development application was advertised yesterday, both in the Advocate and online on our website. And that public consultation period is open for the statutory 14 days, whereby people with concerns or who wish to support the development application can make representations to Council in the appropriate manner, and all the information that people need to make their own assessment about the project is available, as I say, on our website.Leon ComptonHow are you going with this conversation as a Council at the moment? It's ultimately in front of you. You've been in local government a long time. Tell me about the sort of challenges that this discussion is posing for your community and for your Council.Peter FreshneyI think more broadly, it really does highlight the almost tension between the two roles of elected members, that is community representation and the role as a member of a planning authority, whereby the planning authority and members therein can only consider those components of a planning scheme that are applicable under the legislation, whereby, and alternatively, the community would expect us to consider much more than that. And that really does highlight the conflict between the two roles. They are clearly defined. We do have a statutory obligation to act as a planning authority and to be impartial in our deliberations. But again, community does not necessarily understand that dual role, and it's very difficult to explain and to give that appreciation, no matter how hard we try.Leon ComptonPeter, we're only talking to one of your counterparts, Greg Keiser, on yesterday's program, and he said he's not sure that the planning rules in Tasmania are up to what the Council needs to do to think about AI data centres in 2026. Do you think that's a fair criticism? You effectively don't have appropriate tools for thinking about an issue like this one?Peter FreshneyI do. That's my personal view. I support Greg's view in that the legislative framework around the planning schemes and our deliberations as a planning authority was legislated in 1993. It's 33 years old. So it was legislated at a time when data centres as such would not have even been considered feasible or on the horizon. I don't believe that any framework can be fit for purpose for every situation, and again, I think there's an opportunity for both federal and state governments to reflect that concern, that reality. And if that isn't their sense of reality, then why is there so much work going on in every jurisdiction across the country to develop a regulatory framework that is fit for purpose? To me, that clearly supports my assertion that the current framework is not fit for purpose.Leon ComptonBut you're being left with it to carry these sort of debates. Do you have the water in your community? Mayor, we've got to go to news in a moment or two, but fundamentally, have you got the water that this data centre might demand if it's up and running?Peter FreshneyThat depends on where the water's being sourced, Leon. But my intent is to work through the development application like everybody else and to understand what's suggested in terms of water. But water supply is a particular concern. Mandating the use of water for irrigation, public use, power generation over and above data centres is not an option for councils. It's a concern for communities, particularly irrigators in our community and those involved in food production. But again, there's so many issues, so many concerns and so much fear out there. That's my real concern. That is the fear that's being generated, the angst that's causing many, many people and people I respect are very concerned about the unknown. Appears In MorningsDuration: 2 hours 29 minutes 59 seconds2h 29m1itemsIn this episode1 of 1Playing'So much fear out there': Development application lodged for Wesley Vale AI data centreDuration: 3 minutes 59 seconds3m 59s