AI Data Centres – Water Supply

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Tabatha Badger MP
August 13, 2026

Ms BADGER question to MINISTER for PRIMARY INDUSTRIES and WATER, Mr PEARCE

In July, AI infrastructure construction company Firmus accidentally disclosed on their website that they were seeking water for their Wesley Vale AI factory from Tasmanian Irrigation. A right to information (RTI) chain from April also shows that they had spoken to Tasmanian Irrigation. In the RTI are emails discussing water supply issues for Firmus’s Bell Bay site where they ask whether it would be necessary to ‘politically pressure TasWater for supply’. We asked TasWater in GBE hearings last year if they would be supplying water to any AI factories. They said no. What is your plan and policy for water allocations to AI and data facilities in Tasmania? Will you rule out Tas Irrigation supplying water to any AI or data facilities, and tell us exactly where the water supply will come from for Firmus’s Wesley Vale and Bell Bay sites?

ANSWER

Honourable Speaker, I thank the member for the question. I make the point that it is a matter for Tas Irrigation, not TasWater. Firmus Technologies, the project you talk about, they’re progressing through Tasmania’s largest private technology investment, with Southgate spanning St Leonards, Bell Bay and Wesley Vale. We welcome that investment as that creates jobs, builds new industries, et cetera. Tasmania does not have to choose between major industries that employ today and industries that employ tomorrow.

To get back to your question, Firmus’s stage 1 supply arrangement for St Leonards is a commercial arrangement with Aurora Energy. The Tasmanian government is not a party to that agreement and is not subsidising it. Firmus’s broader proposed electricity demand is long term and is staged.

Ms Badger – Water, water.

The SPEAKER – Order

Mr PEARCE – Future capacity will depend on approvals, network requirements, commercial energy arrangements and the company’s investment decisions. Tasmania is developing clear –

Mr Mitchell – Just table the talking points, Gav.

Mr PEARCE – Are you listening? Tasmania is –

Ms BADGER – Honourable Deputy Speaker.

Mr Pearce – developing clear expectations for large data centres and AI infrastructure –

The SPEAKER – Honourable minister, please take a seat.

Ms BADGER – We might just get back onto water, if that’s okay. I understand that the minister can’t answer specifically for TasWater, but you can for Tas Irrigation. You are in charge with our water monitoring and planning across the state, so we’d love to hear from you on that.

Mr PEARCE – I will join the national ministers’ conference on water tomorrow, and one of the agenda items is the national plan around AI data centres, not only for energy but also water because it has an impost, it has an effect on all states and territories across the country.

Dr Woodruff – What have you promised Firmus?

Mr PEARCE – As I said, Firmus’s stage one arrangements supply for St Leonards is a commercial arrangement and we did not influence it.

Members interjecting.

The SPEAKER – Order. I ask all members to settle, please. The honourable member for Lyons, Ms Badger, has the call.

Supplementary Question

Ms BADGER – Apologies, everyone. Will you rule out Tas Irrigation supplying any water for AI and data facilities, not just Firmus? Tell us about your policy for supplying water in this state to AI and data facilities? Firmus is not the only firm that the Office of the Coordinator-General is speaking to.

Mr PEARCE – In relation to your question around TI supplying that water, that is a no. That was an internal mistake, error, call it what you like. It’s been rectified on Firmus’s –

Ms Badger – So, you’re ruling it out?

Mr PEARCE – You’re pointing your finger at me and saying stuff that I can’t hear.

Ms Badger – Sorry. You’re ruling that out, minister, is that what you’re saying?

Mr PEARCE – We had nothing to do with that. That was an internal error.

The SPEAKER – Honorable minister, speak through the Chair.

Mr PEARCE – An internal error, honourable Speaker, on Firmus’s behalf. Nothing to do with TI, nothing to do with my portfolio.

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