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Tungkillo Data Centre Developer Pauses Plans after Community Backlash

November 12, 2026 9:33 am in by
File photo of an AI data centre. Image: marchello74 / Shutterstock

The company behind a proposed hyperscale data centre at Tungkillo has paused its plans, acknowledging it misread the strength of community opposition to the project.

Quantum DC says it will not seek development approval this year, instead taking more time to address residents’ concerns and build a broader community engagement program.

The Melbourne-based developer has proposed building the 1,200-megawatt Tungkillo Compute and Energy Hub, complete with on-site gas-fired power generation, on farmland along Collins Road.

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In a statement, chief executive Alby Tomassi admitted the company’s initial rollout had created confusion and frustration.

“We misread the strength of feeling about this proposal and acknowledge the first weeks of our early engagement created more questions than answers,” Mr Tomassi said.

“We sincerely apologise for this, and we understand the disappointment and frustration it has caused. That is why we are pausing and intend to take a fresh approach to how we engage and how this proposal is tested.”

Quantum DC says it has been contacted by more than 350 people and compiled a list of 432 questions from the community.

Concerns raised include the facility’s water and electricity demands, noise, lighting impacts on the nearby River Murray International Dark Sky Reserve, traffic, bushfire risk, loss of farming land and environmental impacts.

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The company plans to establish a panel of independent experts to review specialist studies and make its findings public.

The pause also means Quantum DC has cancelled its upcoming drop-in sessions at the Mannum Leisure Centre, which had been scheduled for the 20th and 21st of November1. Earlier sessions in Tungkillo and Mannum were postponed last month following safety concerns, with hundreds of residents holding their own community meetings instead.

Further meetings and rallies planned

Community opposition is continuing, with several rallies and public forums scheduled over the coming days.

The Aussies Against AI Data Centres group will host a public meeting at the Tailem Bend Town Hall this Monday, the 16th of November from 7pm to discuss regional proposals, including Firmus Technologies’ plans for a 1,000-megawatt data centre near the town.

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One Nation MPs Robert Roylance (Member for Hammond) and Jason Virgo (Member for MacKillop) have confirmed they will attend. Developers Firmus and Quantum DC will not be represented.

A separate peaceful rally is also planned on the steps of State Parliament this Sunday, November 15, from 10.30am.

The issue was debated in the Legislative Council yesterday, with SA Greens leader Robert Simms moving a motion calling on the State Government to oppose the Tungkillo project and introduce a statewide moratorium on new data centres. The motion followed an online petition against the Tungkillo development passing 13,000 signatures.

Quantum DC’s decision to delay its development application does not mean the proposal has been abandoned. The company says it will undertake a longer-term consultation process before deciding its next steps, as residents and MPs continue to push for greater scrutiny.

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