Firmus Secures $325 Million to Expand AI Infrastructure in Australia

Australian artificial intelligence company Firmus announced on March 15, 2024, its plan to raise A$500 million (approximately $324.90 million) in equity funding. This initiative aims to accelerate the rollout of Project Southgate, the company’s ambitious infrastructure project designed to support AI technologies. The funding comes at a time when global demand for AI-related services is surging, prompting firms to invest in essential infrastructure.

The proceeds from this equity raise will be allocated towards expanding site development, deploying infrastructure, and securing energy agreements for AI factories or data centres across selected locations in Australia. In a statement, Tim Rosenfeld, Co-CEO of Firmus, emphasized the importance of this funding, noting, “With demand for AI infrastructure accelerating, this funding ensures we can meet it quickly, cost-effectively, and in line with Australia’s renewable energy future.”

Project Southgate aims to create a robust infrastructure that includes data centres necessary for AI training and inference. This initiative is being developed in collaboration with CDC Data Centres and Nvidia, and it is projected to achieve a capacity of up to 1.6 gigawatts by 2028. The recent equity placement follows Firmus‘s success in September 2023, when it closed a A$330 million equity placement, attracting a cornerstone investment from Ellerston Capital and participation from Nvidia.

As the global landscape for artificial intelligence continues to evolve, the focus on infrastructure investment becomes increasingly critical. Firmus‘s initiative reflects a broader trend where companies are seeking to enhance their capabilities in response to the escalating demand for AI services. The successful execution of Project Southgate could position Australia as a significant player in the global AI infrastructure market, aligning with the country’s commitment to renewable energy solutions.

With this new funding, Firmus is poised to not only expand its operational reach but also contribute to the sustainable development of AI technologies, ensuring that the infrastructure built today meets the needs of tomorrow.