KEY POINTS
- Australian AI infrastructure firm Firmus has secured a $10 billion debt package led by Blackstone and Coatue Management.
- The capital will fund “Project Southgate,” a national initiative to build high-capacity data centers and AI training infrastructure across Australia.
- Developed in partnership with Nvidia and CDC Data Centres, the project aims for a massive 1.6 gigawatt capacity over the next three years.
Firmus, a leading developer of artificial intelligence infrastructure in Australia, announced a monumental $10 billion debt funding package on Monday. The financing round was spearheaded by global private equity giant Blackstone and New York-based technology investor Coatue Management. This deal represents one of the largest infrastructure investments in the region’s history.
The capital is earmarked for the next expansion phase of “Project Southgate.” This initiative focuses on building the physical foundations required for AI training and inference. The plan includes the construction of advanced data centers in major Australian hubs, including Sydney, Melbourne, and Perth.
Firmus is collaborating with industry heavyweights to bring this vision to life. The project features long-term partnerships with U.S. chip leader Nvidia and CDC Data Centres. Together, these companies intend to reach a total power capacity of 1.6 gigawatts by the year 2028.
Blackstone executives highlighted the importance of the deal, describing AI infrastructure as a high-conviction investment theme. They believe Australia is uniquely positioned to become a central player in the global AI transformation. The sheer scale of the build-out reflects the accelerating demand for specialized computing power.
This latest debt package follows a successful string of equity raises for the company. Last year, Firmus secured over $580 million in equity backed by Nvidia and local Australian investors. These funds helped establish a domestic supply chain for AI factory components, reducing reliance on international manufacturing.
Project Southgate is also expected to be a significant job creator for the Australian economy. Firmus estimates that the infrastructure rollout will support hundreds of long-term roles in advanced manufacturing and construction. Many of these positions involve reskilling local tradespeople for high-tech industrial work.
The company’s vertically integrated approach allows it to design and build AI facilities more efficiently than traditional models. By localizing the production of cooling and power systems, Firmus aims to deliver infrastructure that is both high-performing and sustainable. This strategy aligns with the broader push for a renewable-energy-focused digital economy.
As the global race for AI supremacy intensifies, this $10 billion injection places Australia at the forefront of the industry. Firmus leaders noted that the funding ensures they can meet the rapid demand for AI “picks and shovels” in real-time. The move reinforces the country’s status as a builder, rather than just a host, of critical digital infrastructure.
