Wesley Vale R&D AI Factory: Q&As
Firmus’ Wesley Vale R&D AI Factory will use an existing warehouse and existing electricity capacity at Wesley Vale to test new approaches to backup energy and the operation of AI infrastructure.
Wesley Vale R&D AI Factory Q&As
The Latrobe Council has approved Firmus’ Permitted Use Development Application to establish a research and development (R&D) facility on part of the former Wesley Vale Pulp Mill landholding at Mill Road, Wesley Vale.
The R&D facility will be equipped with computing hardware that hosts AI workloads for customers, and is designed to support a research program focused on reducing the reliance on conventional sources of backup power like diesel generators. It will build on locally developed software, patented by Firmus in 2025 (filed in 2021 and granted 2025), which adjusts the power drawn by compute hardware in response to grid conditions. The research will aim to expand these capabilities to run compute hardware flexibly and reliably during power interruptions and when using alternative backup power sources, including batteries.
Firmus is an AI infrastructure company, founded to develop new and more efficient infrastructure for organisations to train and run AI models. The Wesley Vale R&D facility will test new approaches to resilience and backup power for AI infrastructure, with the aim of reducing reliance on traditional sources of backup power, such as diesel generators. The facility provides a real-world environment where ideas can be tested, measured and refined.
The research will focus on two areas:
- Smarter load management: Using Firmus’ software to schedule and adjust AI computing workloads in response to electricity network conditions, so the facility can reduce demand quickly and in a controlled manner when the grid needs it.
- Alternative backup power: Testing battery storage and other technologies that could reduce or replace the need for traditional forms of backup, including diesel generators.This builds on Firmus’ Launceston R&D program, where the company has developed and tested new approaches to AI infrastructure cooling, grid integration and energy efficiency.
No. The former mill buildings will not be demolished for the R&D facility. One of the existing sheds on the former Wesley Vale Pulp Mill site will be converted into the R&D facility. Early works include removing the shed roof and some smaller outbuildings.
No, the R&D facility will use existing infrastructure and available connection capacity at the TasNetworks Wesley Vale substation, without requiring a full substation upgrade or an increase in the site’s overall connection capacity. TasNetworks and its contractors will undertake minor upgrades to existing assets and install new cables and conduits to connect the facility. Firmus will pay for all of these works.
The R&D facility will have a maximum electricity demand of 26 MW. Its electricity demand can be significantly reduced during select times of significant grid stress. Connection is subject to technical studies and approvals, which Firmus is progressing with TasNetworks and the Australian Energy Market Operator (AEMO).
No. The facility will operate using the existing electricity infrastructure and existing available connection capacity, subject to the required technical studies and connection approvals. Firmus is progressing those detailed technical studies and approvals.
Firmus is funding all costs of the R&D facility and its research program. The facility will also operate commercially, providing AI computing capacity to customers. Running real customer workloads gives the research the real-world operating conditions it needs.
Under the proposed connection arrangement, the R&D facility will operate as a flexible load. This means its electricity demand can be significantly reduced during select times of significant grid stress if required by TasNetworks, for example during periods of network stress or very high demand.
This flexibility is an important part of how Firmus is designing its Tasmanian facilities to help reduce pressure on Tasmania’s electricity network.
The R&D facility will use dry cooling for most of the year, with little or no water required for cooling under typical operating conditions. Water will generally only be used on hot days above 26°C, which typically occur on a limited number of days each year based on local weather data.
Estimated average annual water use for cooling is approximately 224 kL, subject to final design and operating conditions. Rainwater harvesting and on-site storage will be the primary source of cooling water, with any supplementary supply used only where required outside of the compute facility, such as for kitchens and bathrooms.
The R&D facility is expected to create approximately 70 jobs during refurbishment and after that approximately 20 permanent jobs for ongoing operations. This will help create new pathways for local workers, students and industry to gain first-hand experience in the emerging AI sector on island.
The R&D facility is a separate project within Firmus’ broader Wesley Vale development area. Its proposed energy requirements form part of the broader Tasmanian energy requirements Firmus is discussing with Hydro Tasmania; they do not represent a separate request.
These discussions are considering Firmus’ future energy requirements, the flexibility its facilities can provide, and how additional renewable generation and firming could support supply. The energy supply process remains ongoing.
No, it’s a separate project that is located on the same Wesley Vale site. It is located within Firmus’ broader Wesley Vale development area, using an existing warehouse on the former pulp mill landholding. It is a separate project that complements the proposed Wesley Vale AI Factory.
Yes. The facility must meet all applicable noise, lighting and other environmental requirements, including the conditions of its approval.
Visit Firmus’ Wesley Vale AI Factory project page to learn more about the larger proposed development.
Please reach out to community@firmus.co and we'll be in touch.