TLDR: Firmus Technologies has secured approval to construct a $2.1 billion ‘AI Factory’ in Launceston, Tasmania. This ambitious project, known as Project Southgate, aims to establish Australia’s largest AI infrastructure, leveraging Tasmania’s abundant renewable energy to produce ‘green AI tokens’. The facility, which will house 16,000 specialized computer processors and utilize liquid-cooling technology, is expected to create approximately 100 direct jobs in its initial phase and become operational by mid-2026. It marks a significant step towards positioning Tasmania as a global leader in sustainable artificial intelligence.
Launceston, Tasmania is poised to become a pivotal hub in Australia’s artificial intelligence landscape following the City of Launceston’s approval for Firmus Technologies’ groundbreaking $2.1 billion ‘AI Factory’. This flagship development, dubbed Project Southgate, was co-announced with the Tasmanian Government in July and is set to revolutionize AI infrastructure by focusing on sustainability and efficiency.
Unlike conventional data centers, Firmus’s AI Factory is purpose-built to ‘power, train and inference artificial intelligences,’ as stated by Firmus co-CEO Oliver Curtis. The facility will house an initial 16,000 specialized computer processors and will be entirely liquid-cooled, a technology that promises up to 60% less energy consumption and half the construction cost compared to traditional data centers.
Tasmania’s world-class renewable energy resources are central to the project’s vision. Firmus co-CEO Tim Rosenfield highlighted that AI tools, such as ChatGPT, are currently energy-intensive. He noted, ‘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.’ This initiative is expected to establish a ‘world-first AI Factory Zone’ in Northern Tasmania, securing the state’s position as a global leader in sustainable AI.
The initial phase of Project Southgate involves a $2.1 billion investment, delivering a combined 90MW of AI infrastructure by 2026. This includes 44MW in Stage 1a, expanding to 90MW in Stage 1b. A future second stage is planned, potentially adding another 300MW of compute capacity, subject to further approvals. Construction is anticipated to commence shortly, with the AI Factory slated to be operational by mid-2026.
The project is projected to generate approximately 100 direct jobs in its first stage, with hundreds more supported across construction, energy, and technology supply chains. Tasmanian Premier Jeremy Rockliff emphasized the broader economic impact, stating, ‘This is about turning Tasmania’s clean energy into opportunity – for jobs, for innovation, and for global leadership in the future of artificial intelligence.’ Launceston Mayor Matthew Garwood echoed this sentiment, remarking, ‘This project really puts Launnie on the map as a hub for digital innovation. It’s about harnessing Tasmania’s renewable energy advantage and making sure our city is at the forefront of Australia’s AI and tech economy.’
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Labor leader Dean Winter also expressed support, calling the development a ‘really exciting opportunity for the north.’ The establishment of this AI Factory Zone is seen as a transformative moment for Tasmania and the nation, providing a new digital baseload to support the growth of the state’s renewable energy sector and enable sustainable expansion in AI infrastructure.
