Firmus secures $10bn to scale Australian AI hubs

Firmus has secured a US$10bn debt financing facility to accelerate Project Southgate, its AI infrastructure expansion initiative in Australia. The facility is led by funds managed by Blackstone Tactical Opportunities and Blackstone Credit & Insurance, with additional support from Coatue Management.

The transaction is described as one of the largest private debt financings in Australia’s history. It aligns with Blackstone’s global strategy of backing large-scale AI compute and data‑centre platforms and will fund the national rollout of Firmus’ AI Factory platform.

Firmus designs and develops highly efficient “AI Factories” using proprietary technology aimed at reducing total ownership costs and speeding AI adoption. The company, headquartered across Australia and Singapore, works with government, enterprise and education customers on sustainable AI solutions.

Co‑CEO Oliver Curtis said the financing reflects Australia’s trajectory as a global player in powering AI and will help Firmus rapidly scale its energy‑efficient AI Factories to meet rising global demand while creating value for customers and the local economy.

Under Project Southgate, AI Factories are under construction at multiple Australian sites, with plans to deploy thousands of graphics processing units (GPUs) by 2028. The project targets up to 1.6GW of infrastructure capacity over that period.

Firmus’ AI Factory platform is based on Nvidia DSX reference architecture, positioning the sites to deliver high‑performance computing for AI workloads. Each facility is described as being purpose‑built for energy efficiency and token production to serve demanding AI customers worldwide.

The new funding will support accelerated deployment of AI Factories as well as expansion of infrastructure manufacturing and energy integration. The initiative is aimed at hyperscale and AI‑native customers globally, while reinforcing Australia’s role in digital innovation and the transition to clean energy.

The debt facility follows a recent strategic equity investment from Maas Group Holdings, part of Firmus’ plan to build an Australian supply chain for AI infrastructure. Over the past six months, Firmus has raised more than A$800m in equity and committed over A$300m towards its domestic supply chain.

Supply‑chain commitments include partnerships with Benmax for mechanical systems and JLE, a Maas Group subsidiary, for electrical systems. These arrangements are intended to support large‑scale deployment while anchoring advanced manufacturing activity in Australia.

Project Southgate is being extended in collaboration with CDC Data Centres and Nvidia. This extension is intended to strengthen Australia’s sovereign capability in digital innovation and advanced manufacturing, alongside support for clean energy projects.

According to Firmus, Project Southgate is expected to support development of up to 5.1GW of new renewable energy projects across Tasmania, Victoria, New South Wales and the Australian Capital Territory through 2028. The flagship Green AI Factory Campus in Tasmania is designed to link new digital industries directly to renewable grids.

The company says the initiative will create thousands of direct and indirect jobs in advanced manufacturing and construction. Early construction stages are under way in Tasmania and Melbourne, with up to 150MW of capacity targeted by mid‑2026.

The first‑stage A$4.5bn investment at Southgate Melbourne includes plans for 18,500 Nvidia GB300 GPUs to be online by April 2026. Overall, Project Southgate aims for total investment of A$73.3bn and operational capacity of 1.6GW by 2028, with surplus AI tokens and services potentially available for export to allied markets.

Blackstone Tactical Opportunities senior managing director John Watson described the “picks and shovels” of AI as one of the firm’s highest‑conviction investment themes. He said AI is driving one of the most significant infrastructure build‑outs in decades and that Australia can play a central role in that transformation.

The financing demonstrates continued investor appetite for large‑scale AI data‑centre infrastructure, particularly where projects integrate energy‑efficient design and access to renewables. It also illustrates how private credit providers are deploying significant capital into digital infrastructure linked to AI demand.