Major AI Infrastructure Expansion Across Australia
Australian cloud computing specialist Firmus has announced a strategic partnership with CDC Data Centres to expand its AI infrastructure across mainland Australia, according to company reports. The collaboration, known as Project Southgate, represents what analysts suggest could become one of Australia’s most significant data center developments, with deployments planned in Sydney, Canberra, Melbourne, and Perth alongside existing operations in Tasmania.
Substantial Financial Investment and Capacity Growth
The partnership reportedly involves an initial investment of AU$4.5 billion (approximately US$2.9 billion), with potential to scale up to AU$73.3 billion (US$47.68 billion) through 2028, according to the companies’ announcement. Sources indicate this expansion could eventually deliver 1.6GW of operational capacity, significantly boosting Australia’s AI infrastructure capabilities. The financial scale, denominated in Australian dollars, represents what industry observers describe as a major commitment to sovereign AI infrastructure development.
Technical Specifications and Implementation Timeline
The report states that Southgate’s first stages are currently under construction in Tasmania and Melbourne, with up to 150MW capacity expected by mid-2026. The AU$4.5 billion first-stage investment at Southgate Melbourne will feature 18,500 Nvidia GB300 GPUs, which have been ordered and are expected to come online by April 2026. According to technical documentation, these deployments will utilize CDC’s proprietary LiquidCore cooling technology, which the company claims does not consume water for primary cooling.
Strategic Vision and Industry Impact
“Project Southgate is a blueprint for how Australia can lead the world in scalable, sovereign AI infrastructure,” said Oliver Curtis, co-Founder and CEO of Firmus Technologies, in the official announcement. “We’re building a new kind of national capability — Australian-designed, powered by renewables, and ready to meet global demand for energy-efficient intelligence.”
Greg Boorer, CEO and founder of CDC, added that the project would “create tens of thousands of safe, high-paying Australian jobs across trades, construction, operations, and knowledge work” while positioning Australia as a leader in sustainable AI development.
Nvidia Partnership and Customer Benefits
According to the companies’ statements, Nvidia’s DGX Cloud will be among the first customers to benefit from access to Southgate, establishing a DGX Cloud region at Southgate Melbourne. Raymond Teh, SVP for Asia Pacific at Nvidia, commented that “Australia is embarking on a transformative journey powered by sovereign AI infrastructure that can accelerate innovation across its industries.” This expansion follows Firmus’s recent announcement about expanding regional AI access through Nvidia DGX Cloud Lepton.
Company Background and Funding
Founded in 2019, Firmus initially focused on crypto and high-performance compute, specializing in immersion cooling, but now describes itself as a pure AI factory builder. The firm, which shares its name with the historical figure Firmus, is backed by Nvidia and several investment firms including Ellerston Capital, Regal Funds Management, Archibald Capital, and Tectonic Investment Management. Reports indicate the company raised AU$280 million (US$180 million) in June in preparation for going public on the Australian Stock Exchange.
Sustainability Commitments and Future Developments
The companies stated that all developments in Australia will be covered by renewable energy, with their data centers potentially supporting the development of up to 5.1GW of new wind, solar, storage, and hydro generation projects across Australia. This expansion occurs alongside other significant industry developments, including IBM’s acquisition of Cognitus to strengthen SAP capabilities and Poppi’s sale to PepsiCo in a $2 billion deal.
Regional Context and Global Positioning
CDC, founded in 2007 as Canberra Data Centres, currently operates nearly 20 sites across Sydney, Canberra, Melbourne, Perth, and Auckland, New Zealand. According to investor Infratil’s most recent results, CDC has 302MW of data center capacity in operation, with 388MW in development across multiple locations set to go live within 18 months. The company’s future development pipeline reportedly totals a further 1.6GW out to 2034, positioning Australia competitively in the global AI infrastructure landscape alongside other technological advancements such as recent medical breakthroughs and significant political developments.
The partnership emerges amid broader international technology competition, including geopolitical tensions around rare earth materials and ongoing financial investigations affecting global markets.
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