Firmus Technologies has secured a USD 10 billion private debt financing facility led by funds managed by Blackstone, with support from Coatue, as the company moves to scale its national AI infrastructure platform.
The financing is among the largest private debt transactions in Australian corporate history and will fund the next phase of Project Southgate, Firmus’ programme to deploy large-scale “AI Factories” across Australia. The facilities are based on the Nvidia DSX reference architecture and are designed to support high-performance AI workloads for hyperscale and AI-native customers.
Project Southgate is expected to scale to around 1.6 GW of capacity by 2028. Firmus said AI Factories are already under construction at multiple Australian sites, with thousands of GPUs planned for deployment. Each facility is purpose-built to optimise energy efficiency and token production, reflecting growing demand for cost-efficient inference and training infrastructure.
The transaction builds on Blackstone’s global strategy to finance large-scale AI compute and data centre platforms, and reflects Coatue’s focus on technology-led infrastructure investments. John Watson, senior managing director in Blackstone’s Tactical Opportunities Group, said AI infrastructure represented one of the firm’s highest-conviction investment themes.
“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,” Watson said.
Firmus co-chief executive Oliver Curtis said the financing would accelerate deployment while reinforcing Australia’s role in the global AI supply chain. “With Blackstone and Coatue’s financing, we’re helping meet the rising global demand for AI compute,” he said. “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.”
According to Firmus, the debt facility will support not only AI Factory deployment but also infrastructure manufacturing and energy integration, signalling a vertically integrated approach rather than a traditional colocation expansion model. The company has positioned Australia’s energy profile, skilled workforce and export-ready infrastructure as key advantages for hosting globally competitive AI compute capacity.
Building on investment
The latest financing follows a series of capital raises that have elevated Firmus’ profile in the AI infrastructure market. In 2025, the company raised AUD 330 million in equity for its Tasmania AI Factory, with US chipmaker Nvidia joining as an investor and technology partner. The Tasmania facility was positioned as Australia’s first sovereign, renewable-powered AI factory and is designed to host tens of thousands of GPUs.
Firmus subsequently raised a further AUD 500 million to expand AI Factory development nationally and has invested in building an Australian AI infrastructure supply chain, including partnerships with local manufacturing and electrification firms. The company is also working with CDC Data Centres on elements of Project Southgate, with the broader programme envisaging a multi-state rollout of AI-optimised facilities.
The deal underscores the growing role of private credit in funding AI-driven data centre development, as demand for high-density, power-intensive compute outpaces traditional financing models. Industry observers say the scale of the financing highlights both the capital intensity of AI infrastructure and increasing investor confidence in long-term demand for AI compute.