Quantum DC data centre plan faces renewed opposition in South Australia

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Quantum DC plan faces opposition

Highlights

More than 250 people rallied at South Australia's Parliament demanding Quantum DC abandon its paused 1,200-megawatt AI data centre project in Tungkillo.
Political opposition has intensified as SA Liberals, Greens, One Nation, and MP Rebekha Sharkie back calls to protect prime agricultural land from data centre development.
The South Australian government is developing new legislation for data centres, with Energy Minister Tom Koutsantonis warning no licence will be granted without minimal impact on the power grid.

Protest rally sharpens pressure on Tungkillo project

As reported by ABC News, more than 250 people rallied at South Australia's Parliament on Sunday to demand that Quantum DC abandon plans for a 1,200-megawatt AI data centre at Tungkillo in the Adelaide Hills.

The demonstration follows the company's announcement earlier this week that it would pause the project after strong backlash from local residents. Campaign organiser Magdalene Lippett says the community does not view the pause as sufficient and wants the development stopped entirely.

Opposition to the proposal is drawing support from across the political spectrum, including the SA Liberals, the Greens, One Nation and independent federal MP Rebekha Sharkie. Local farmer Kym Gladigau says the site is prime agricultural land and warns the project could add risks for food production and bushfire management in the region.

Policy response and sector implications for South Australia

Liberal leader Ashton Hurn says South Australia has only a limited amount of prime farming land and argues it should be protected from industrial development. Greens leader Robert Simms says his party is moving a motion calling on the government to reject the Tungkillo proposal and is also seeking a statewide moratorium on data centres.

Energy Minister Tom Koutsantonis says he is very disappointed with the developers' community engagement and says the company has not approached the government about its plans. He maintains that data centres are essential for Australia's future, but says South Australia will not license them unless they have almost no impact on the power grid.

The government is now working on legislation intended to deal comprehensively with the roll-out of data centres in the state. That signals the dispute around Quantum DC's project may shape a wider regulatory framework for data centre investment and energy-intensive digital infrastructure in South Australia.

Previously, we outlined the main factors behind Fitch ratings affirmation for Cipher Compute’s Texas data center project.

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