Nvidia-Backed Firmus Scores $10 Billion Debt Package for Australian Data Centers

TLDR

• Australian AI infrastructure company Firmus secured $10 billion in debt funding led by Blackstone and Coatue Management to expand data center operations
• The funds will support Project Southgate, aiming to build 1.6 gigawatts of AI training infrastructure across Australia by 2028
• Firmus previously raised $582 million in equity placements backed by Nvidia and Ellerston Capital in two rounds last year
• Australia ranks as the world’s third-largest AI investment destination behind the U.S. and China, with potential for $105 billion in new data center capacity
• Firmus plans to go public on the Sydney stock exchange later in 2026, following a November valuation of $6 billion

Australian AI infrastructure developer Firmus Technologies announced Monday it closed a $10 billion debt financing package. The funding came from global private equity firm Blackstone and New York technology investor Coatue Management.

The company will use the money to build the next phase of Project Southgate. This initiative focuses on developing AI training and inference infrastructure throughout Australia.

Firmus is working with CDC Data Centres and chip maker Nvidia on the project. The partnership aims to reach a total capacity of 1.6 gigawatts within three years.

John Watson serves as a senior managing director in Blackstone’s Tactical Opportunities Group. He called the AI infrastructure build-out one of the most important developments in decades.

Watson said Australia can play a central role in this transformation. The country has emerged as a major player in global AI investment.

Australia’s Growing AI Infrastructure Role

Research from Commonwealth Bank of Australia shows the country now ranks third worldwide for AI investment. Only the United States and China attract more capital in this sector.

The bank estimates Australia could add approximately $105 billion in data center capacity in coming years. Strong energy access and rising demand for AI systems support this growth.

Firmus raised $582 million through two equity placements last year. Nvidia and Australian investor Ellerston Capital backed these funding rounds.

The company received a valuation of around $6 billion during a $500 million raise in November. Firmus plans to list on the Sydney stock exchange later in 2026.

Global AI Spending Trends

Moody’s Ratings projects investment in AI-related data centers will exceed $3 trillion over the next five years. Debt financing will fund much of this expansion.

Four major technology companies face massive capital spending requirements in 2026. Alphabet, Amazon, Meta, and Microsoft could collectively spend $650 billion this year.

Investors are monitoring these large cash outlays closely. Questions remain about how quickly this investment will generate steady returns.

The Project Southgate expansion represents a major infrastructure commitment in Australia’s tech sector. Firmus expects to complete the 1.6 gigawatt buildout by 2028 with support from Nvidia chips.

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