Australian AI firm Firmus secured a massive $10 billion debt funding deal on Monday. Global private equity giant Blackstone and New York’s Coatue Management led the financing, marking one of the largest tech investments in Australia’s history.
Firmus plans to use this huge cash injection to push forward with its “Project Southgate” initiative. This project focuses on building the essential infrastructure needed to power modern artificial intelligence. Specifically, the company wants to build a network of advanced data centers across Australia. These facilities will provide the massive computing power required for AI training and everyday use.
The project relies on a strong partnership with U.S. chip leader Nvidia and CDC Data Centres. Together, they aim to create a network with a power capacity of 1.6 gigawatts within the next three years. To put that in perspective, that much power can support an incredible amount of digital processing, making Australia a top destination for global tech companies looking for computing space.
John Watson, a senior managing director at Blackstone, shared his excitement about the deal. He noted that the hardware and buildings supporting AI are among the firm’s top investment priorities right now. Watson believes the world is seeing its biggest infrastructure build-out in decades. He also emphasized that Australia has a unique opportunity to lead this global transformation.
This $10 billion debt package follows a successful year for Firmus. Last year, the company raised about
582 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 to 830 millionthrough two separate equity placements. Those earlier rounds also saw backing from Nvidia and the Australian investment firm Ellerston Capital.
By securing this new funding, Firmus is making a big bet on the future of Australian technology. Instead of just developing software, they are building the physical foundations—the “picks and shovels”—that allow AI to function. This strategy positions Australia as a vital hub for the global AI economy as demand for data processing continues to skyrocket worldwide.
