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AI data-centre backlash grows as Adelaide Hills project is paused

a bunch of blue wires connected to each other — Credit: Photo by Scott Rodgerson on Unsplash
Photo by Scott Rodgerson on Unsplash

Community resistance to Australia’s data-centre boom is intensifying after Quantum DC paused the approval process for its proposed 1,200-megawatt Tungkillo AI data centre in the Adelaide Hills.

The project has faced opposition over water use, electricity demand, bushfire risk, traffic and environmental impacts.

The pause adds to a growing list of data-centre developments encountering resistance as Australia’s AI infrastructure pipeline expands rapidly.

The issue is becoming increasingly important because data centres require enormous amounts of power, land and grid investment.

Supporters argue the projects are essential if Australia is to compete in artificial intelligence and cloud computing.

Opponents are increasingly questioning whether local communities are being asked to absorb too much of the infrastructure burden.

The Tungkillo decision highlights a growing tension between national ambitions to attract AI investment and local concerns about environmental and infrastructure impacts.

For developers, community acceptance may now become just as important as access to capital and electricity.