Tasmanian Premier Jeremy Rockliff joined Firmus Co-CEOs Tim Rosenfield and Oliver Curtis to announce the establishment of a world-leading AI Factory Zone in Northern Tasmania, marking a transformational moment for the State and the nation.
"Tasmania is set to lead the world in sustainable artificial intelligence with the creation of a world-first AI Factory Zone in Northern Tasmania," Premier Rockliff said.
Powered by Tasmania's world-class renewable energy, the AI Factory Zone will position the state as a global hub for clean, scalable AI.
Stage 1 of the project will deliver a combined 90MW of AI infrastructure in Northern Tasmania by 2026 - with 44MW delivered under Stage 1a, and Stage 1b doubling capacity to 90MW. A further 300MW second stage is planned to follow, subject to final approvals. These AI Factories will provide a new digital baseload to support the growth of Tasmania's renewable energy sector and enable sustainable expansion in AI infrastructure.
At the heart of the Zone is Firmus' Project Southgate - a purpose-built campus of 100% liquid-cooled AI Factories now under construction in Launceston. This modular, next-generation infrastructure is designed in Australia and consumes up to 60% less energy, while costing up to half as much to construct as traditional data centres.
Southgate will power a wide range of AI applications, from gaming and content creation to enterprise AI and high-performance computing, connected via high-speed fibre across Australia and globally.
The project represents Australia's largest investment in AI Factory infrastructure, with up to $2.1 billion to be invested in Stage 1a over the next 12 months. This stage is expected to create up to 100 direct jobs, with hundreds more supported through construction, energy and technology supply chains. Additional direct employment will follow as part of Stage 1b.
"This is about turning Tasmania's clean energy into opportunity - opportunity for jobs, for innovation, and for global leadership in the future of artificial intelligence," Premier Rockliff said.
Firmus Co-CEO Tim Rosenfield said AI tools like ChatGPT run on tokens that are currently heavy on energy and emissions.
"Producing these AI tokens in Tasmania will create a new type of green AI token - clean and powered by renewables - enabling AI to scale sustainably," Mr Rosenfield said.
Firmus Co-CEO Oliver Curtis said this isn't a traditional data centre.
"AI Factories are purpose-built to power, train and inference artificial intelligences. With Tasmania's clean energy and our AI Factory platform, we believe this will be the most cost-effective, sustainable AI facility in the world," Mr Curtis said.
"Project Southgate will form the foundation of Australia's artificial intelligence infrastructure and secure our place as the Asia-Pacific region's AI hub."
Premier Rockliff said Tasmania's clean energy strategy, innovation and skills make us the natural home for sustainable AI.
"This investment by Firmus is a blueprint for the future and we look forward to the opportunities it will unlock for Tasmanians," Premier Rockliff said.
"It's a clear example of our Tasmanian Liberal Government getting on with the job and backing projects that deliver - both now and for the future of Tasmania."
