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Tasmania releases draft rules for data centre and AI growth

09 Sep, 2026
Rest makes $1 billion investment in renewables and green data centres



The Tasmanian government has released a new draft policy framework establishing clear expectations for future data centres and AI infrastructure developments across the state.

The Draft Expectations for Data Centres and AI Infrastructure framework aims to attract tech investment while protecting local utility infrastructure and power security.

Under the proposal, developers will be required to engage genuinely with local communities, manage water use responsibly, and contribute fairly to infrastructure costs.

“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,” said Minister for Business, Industry and Resources, Felix Ellis.

“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.”

Because data centres and AI workloads require substantial amounts of electricity, energy security forms a core focus of the framework.

Minister for Energy and Renewables, Nick Duigan highlighted that investors must actively support Tasmania’s growing grid rather than strain existing capacity.

“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,” Duigan said.

He added that new developments will be expected to support additional renewable energy generation, cover their connection and network costs, and maintain overall grid stability.

“This includes expecting 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.”

Public consultation on the draft expectations is open for feedback until October 12.

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