Sydney, Australia – Australian artificial intelligence infrastructure company Firmus Technologies has secured a commitment for $10 billion in debt financing, led by funds managed by Blackstone and supported by Coatue. The financing will fuel the next phase of the company’s ambitious Project Southgate, a national rollout of its AI Factory platform, designed to meet rapidly increasing global demand for high-performance computing.
The deal, one of the largest private debt financings in Australian history, underscores the escalating investment in infrastructure required to support the burgeoning field of artificial intelligence. It reflects a broader trend of capital flowing into AI-driven compute, with investors recognizing the substantial infrastructure build-out needed to power the next generation of technology.
Firmus’ AI Factories, currently under construction across multiple sites in Australia, are planned to house thousands of GPUs. Project Southgate is projected to scale up to 1.6 gigawatts of infrastructure by . The company emphasizes the purpose-built energy efficiency of these facilities, alongside their capacity for token production, catering to the specific needs of demanding AI customers.
Blackstone’s involvement highlights the firm’s strategic focus on financing large-scale AI compute and data center infrastructure globally. John Watson, a Senior Managing Director in Blackstone’s Tactical Opportunities Group, stated, “The picks and shovels powering the AI revolution are one of our highest conviction investment themes, and we are excited to finance Firmus’ continued growth.” He further noted that AI is driving a significant infrastructure build-out, positioning Australia for a central role in that transformation.
Coatue’s participation lends further weight to the deal, demonstrating confidence in Firmus’s platform and the potential of the Australian market. Coatue is known for its research-driven approach to technology and infrastructure investing.
The financing is expected to accelerate the deployment of Firmus’ AI Factory platform, which is based on the NVIDIA DSX reference architecture. This architecture is designed to optimize performance and efficiency for AI workloads. The company is backed by Nvidia, and the new funding will incorporate Nvidia chips into its data centers.
Australia is rapidly emerging as a key destination for AI investment. Research from Commonwealth Bank of Australia indicates the country is now the world’s third-largest AI investment destination, trailing only the United States and China. The country is projected to add approximately A$150 billion worth of data centers as a result of this growth.
Firmus has been actively developing projects in Perth, Sydney, and Melbourne, and raised A$500 million in November to fund site development, infrastructure deployment, and energy-related agreements. At that time, the company’s valuation was estimated at around A$6 billion.
The scale of this debt financing underscores the increasing reliance on debt to fund AI-related infrastructure. Analysts at Moody’s Ratings project that investment in data centers and related areas could exceed $3 trillion over the next five years, with a significant portion financed through debt.
Firmus is expected to pursue a public listing in Sydney later this year, potentially providing further opportunities for investors to participate in the company’s growth. The company’s co-chief executive, Oliver Curtis, has emphasized the need for greater investment in battery capacity to support Australia’s role as an AI infrastructure hub.
This financing represents a substantial vote of confidence in Firmus’s vision and the potential of the Australian AI market. It also signals a broader shift in capital allocation towards the infrastructure required to support the continued advancement of artificial intelligence globally.
