Launceston has taken a major step toward becoming a hub for digital innovation, with council approval granted for Project Southgate, a $2.1 billion AI data centre in St Leonards.

The project, spread across more than five hectares, will feature advanced liquid-cooled server halls, a modern office building, and landscaped surrounds designed to soften the impact on the local environment. Powered by Tasmania’s abundant renewable energy, the facility positions Launceston as a frontrunner in Australia’s growing artificial intelligence and data infrastructure sector.

Economic Boost with Environmental Conditions

The development is expected to generate around 100 on-site jobs during construction and create 30 permanent positions once operational. While the economic benefits are clear, councillors imposed 13 environmental conditions to address local concerns over sustainability, energy usage, and cooling infrastructure.

Launceston Mayor Matthew Garwood welcomed the project, noting its potential to blend economic growth with environmental responsibility.

“This project brings new opportunities for Launceston, aligning with our strengths in clean energy while safeguarding community expectations around sustainability,” he said.

Why It Matters

With the rise of AI, global demand for high-performance data centres has surged. Tasmania’s renewable energy network provides a unique advantage, offering a low-carbon foundation for such facilities. This project not only strengthens local employment but also contributes to Australia’s positioning in the digital economy.

Project Timeline

Construction is set to begin in 2025, with the data centre aiming to be fully operational by mid-2026. Once complete, Project Southgate will be among the largest technology investments in Tasmania’s history.

Key Takeaways

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• Launceston City Council approved the $2.1 billion Project Southgate AI data centre.
• The facility will create jobs while harnessing Tasmania’s renewable energy.
• Environmental conditions were imposed to balance community and sustainability concerns.
• The centre is expected to be operational by mid-2026, placing Launceston at the forefront of Australia’s digital future.