Nvidia, Australia's Firmus Technologies partner on AI data center

Nvidia is partnering with Firmus Technologies, an Australian startup, to build AI data centers that run on renewable energy in Australia.

Construction has started on two sites in Melbourne and Tasmania as part of Project Southgate, with a planned investment of AU$4.5 billion (US$2.9 billion) and a power capacity of 150 megawatts.

Firmus said the data centers will use Nvidia’s GB300 chips and are expected to begin operations by April.

The company said the project could expand to 1.6 gigawatts of capacity by 2028, with a total investment of AU$73.3 billion.

Firmus said this would support 5.1 gigawatts of new wind, solar, and hydropower, which BloombergNEF estimates is about 5% of Australia’s total installed power capacity.

The project aims to create large-scale, AI-focused infrastructure powered by renewable energy.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Firmus hasn’t disclosed grid access or funds for 1.6GW by 2028

Firmus started construction on up to 150MW in Tasmania and Melbourne. It has not disclosed interconnection agreements (formal permission to connect facilities to the electricity network) or renewable power purchase agreements (PPAs). Nor has it shared planning permits or committed financing for its 1.6GW goal by 2028.
Data from the Australian Energy Market Operator (AEMO) puts 20.5GW of standalone battery projects in the National Electricity Market (NEM) pipeline, with 4.7GW of Battery Energy Storage System (BESS) applications approved by March 2025.
Firmus raised A$330 million at a post-money valuation (company’s value after the investment) of A$1.85 billion. Scaling from 150MW to 1.6GW in two years is a tenfold jump that needs more capital than is committed today.

Battery and 24/7 software can chase Victoria and Tasmania’s AI buildout

Project Southgate’s renewable goals create demand for batteries to provide firming capacity (storage or flexible generation that supplies power when wind and solar dip). As of March 2025, Victoria accounts for about 23% of the National Electricity Market’s (NEM) 51GW pipeline, while Tasmania sits at 0.25%.
Developers can time projects with Firmus’ phased rollout, with capacity due by April 2026. Tasmania’s resources and the Marinus Link transmission project (a proposed undersea high-voltage connection between Tasmania and Victoria) favor co-located storage.
Software companies offering 24/7 carbon-free energy procurement plus matching solutions (tools that track hourly use with renewable generation across sites and grid connections) can serve AI infrastructure operators like Firmus.