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If you build it… Tasmania sets the state’s expectations for data centres and AI infrastructure

The Tasmanian government has released a draft framework for data centre and AI infrastructure projects, with proponents expected to deliver jobs, support renewable energy, and use water responsibly.

Tue, 08 Sep 2026
If you build it… Tasmania sets the state’s expectations for data centres and AI infrastructure

The Tasmanian government has released draft expectations for data centres and AI infrastructure as it seeks to attract investment while ensuring large technology projects benefit the state’s economy and community alike.

The draft framework sets out expectations for companies seeking to develop data centres and AI infrastructure in the state, including genuine community engagement, responsible water use, and compliance with existing planning and approval processes.

Minister for Business, Industry and Resources Felix Ellis said investment would be welcomed, but projects would not receive preferential treatment.

 
 

“These draft expectations provide a clear framework to ensure our state remains at the forefront of innovation, harnessing Tasmania’s strengths while opening new frontiers in digital transformation,” Ellis said.

“They provide clear and predictable guidance to proponents, investors, industry, communities and other stakeholders, while supporting the responsible development of data centres and AI infrastructure that delivers enduring benefits for Tasmania.”

The government said new projects would be expected to “pay their way” by contributing to the resilience of Tasmania’s infrastructure while supporting existing industries and creating new job opportunities.

Energy demand is a particular focus as AI workloads and data centres require significant amounts of electricity. Tasmania is positioning its renewable energy resources and pipeline of new generation projects as a potential advantage for attracting investment.

Energy and Renewables Minister Nick Duigan said new projects would need to contribute positively to the state’s energy system.

“These industries present real opportunities for Tasmania through jobs, investment, and economic diversification, but they must also deliver community benefits,” Duigan said.

“Data centres and AI infrastructure can be heavy power users, and our government is focused on ensuring Tasmania has the right frameworks to support this growth in demand in a way that contributes positively to our energy system.”

The draft expectations include requirements for new projects to support additional renewable energy generation, meet their share of network and connection costs, and operate in a way that protects energy security and grid stability.

The draft Expectations for Data Centres and AI Infrastructure are open for public feedback until 12 October 2026.

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