Firmus has secured $10bn debt financing facility to advance Project Southgate, its AI infrastructure expansion initiative in Australia.

The financing is led by funds managed by Blackstone Tactical Opportunities, Blackstone Credit & Insurance, and affiliated funds (together, Blackstone). It also includes support from Coatue Management.

The funding is set to facilitate the national rollout of Firmus’ AI Factory platform, designed to meet the increasing global demand for high-performance computing (HPC) through energy-efficient technologies based on Nvidia DSX reference architecture.

Firmus specialises in developing highly efficient AI Factories using proprietary technology aimed at reducing total ownership costs and accelerating AI adoption.

The company operates from its offices in Australia and Singapore and partners with diverse sectors such as government, enterprise, and education to deliver sustainable AI solutions.

This transaction marks one of the largest private debt financings in Australia’s history and aligns with Blackstone’s global strategy to finance large-scale AI compute and data-centre infrastructure platforms.

Firmus co-CEO Oliver Curtis said: “This milestone reflects the trajectory of Australia as a global player in powering AI.

“With Blackstone and Coatue’s financing, we’re helping meet the rising global demand for AI compute. On the ground, we’re focused on rapidly scaling our energy-efficient AI Factories to meet demand and create lasting value for both our customers and the broader local economy.”

AI Factories by Firmus are currently under construction across several Australian sites, with plans to deploy thousands of graphics processing units (GPUs) by 2028. Project Southgate aims to scale up to 1.6 gigawatts (GW) of infrastructure in that timeframe.

According to Firmus, each factory is purpose-built for energy efficiency and token production to serve the world’s most demanding AI customers.

The financing by Blackstone and Coatue will accelerate the deployment of AI Factories, as well as bolster infrastructure manufacturing and energy integration efforts. The initiative focuses on serving hyperscale and AI-native customers globally and seeks to enhance Australia’s role in digital innovation while contributing to the transition to clean energy.

Blackstone Tactical Opportunities Group senior managing director John Watson said: “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. AI is driving one of the most significant infrastructure build-outs in decades, and we believe Australia can play a central role in that transformation.”

In addition to this financing, Firmus recently announced a strategic equity investment from Maas Group Holdings, aligning with its long-term strategy of building an Australian supply chain for AI infrastructure.

Over the past six months, Firmus has raised more than A$800m ($562.7m) in equity and committed over A$300m ($211m) towards its Australian supply chain. This includes partnerships with companies like Benmax for mechanical systems and JLE, a subsidiary of Maas Group Holdings, for electrical systems.

Project Southgate is being extended in collaboration with CDC Data Centres and Nvidia. This extension will enhance Australia’s sovereign capability in digital innovation, advanced manufacturing, and support clean energy transitions.

The initiative will create thousands of direct and indirect jobs in advanced manufacturing and construction while supporting the 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 project envisions Australia leading in AI development with infrastructures powered entirely by renewable energy. The flagship Green AI Factory Campus in Tasmania aims to anchor new digital industries directly to renewable power grids, facilitating major projects like Marinus Link.

Beyond energy considerations, Project Southgate is expected to act as a catalyst for building sovereign capabilities by creating skilled jobs in advanced manufacturing and showcasing homegrown innovation that can lead responsible AI development.

Construction for the first stages of Project Southgate is underway in Tasmania and Melbourne, with up to 150 megawatts (MW) planned by mid-2026. The A$4.5bn first-stage investment at Southgate Melbourne will see implementation of 18,500 Nvidia GB300 GPUs expected online by April 2026.

Looking ahead, Project Southgate aims for a total investment reaching A$73.3bn with operational capacity expanded to 1.6GW by 2028. Additionally, any surplus AI tokens and services not consumed domestically are expected to be available for export to allied markets, contributing to a premium ESG-branded class for sustainable AI offerings.