Blackstone and Coatue’s $10 billion financing of Firmus highlights how AI infrastructure, power capacity and data centres are becoming core strategic assets.
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| Firmus’ $10 billion funding round underscores how global capital is shifting from AI software to the infrastructure powering the technology. Image: CH |
SYDNEY, Australia — February 9, 2026:
The $10 billion debt package secured by Australian AI infrastructure developer Firmus is a powerful signal that the next phase of the artificial intelligence race will be fought less over algorithms and more over physical capacity—data centres, power generation and access to advanced chips.
Led by global private equity giant Blackstone and technology-focused investor Coatue Management, the financing reflects growing investor conviction that AI infrastructure has become one of the most attractive long-term asset classes. Rather than backing individual applications or models, capital is increasingly flowing toward the “picks and shovels” that make large-scale AI deployment possible.
At the center of the deal is Project Southgate, Firmus’ initiative to build AI training and inference infrastructure across Australia. Developed in collaboration with CDC Data Centres and Nvidia, the project is expected to reach up to 1.6 gigawatts of capacity over the next three years—a scale that would place it among the world’s most significant AI-focused data centre platforms. Such capacity is critical as AI models grow more complex and energy-intensive, straining existing global infrastructure.
Blackstone’s enthusiasm highlights a broader shift in how investors view AI. The firm has increasingly emphasized digital infrastructure as a durable, long-term investment theme, with predictable demand and inflation-resistant cash flows. Framing AI infrastructure as a “highest conviction” opportunity suggests confidence that the surge in computing needs will persist well beyond current market cycles.
Australia’s emergence as a focal point for this investment is notable. Long seen as peripheral to the world’s major technology hubs, the country is positioning itself as a stable, energy-rich destination for hyperscale infrastructure. Political stability, strong regulation and access to power have become competitive advantages at a time when energy availability is one of the biggest bottlenecks facing AI expansion.
Nvidia’s involvement further reinforces the project’s strategic importance. As the dominant supplier of AI accelerators, Nvidia has a vested interest in ensuring that global infrastructure can support rapid deployment of its hardware. Supporting developers like Firmus helps extend the company’s ecosystem beyond traditional AI centers in the United States and Europe, diversifying geographic exposure.
The structure of the financing also signals Firmus’ growing maturity. After raising A$830 million in equity last year from backers including Nvidia and Ellerston Capital, the company is now turning to large-scale debt to accelerate growth. That shift suggests confidence in future revenues from enterprises and cloud providers seeking scarce AI computing capacity.
More broadly, the deal illustrates how AI is reshaping global capital allocation. Infrastructure that once served generic cloud computing is now being redesigned specifically for AI workloads, with power density, cooling and chip integration becoming defining features. Investors are betting that whoever controls this infrastructure will hold a strategic choke point in the AI economy.
For Australia, Firmus’ expansion represents both opportunity and risk. If Project Southgate succeeds, it could anchor the country more firmly in the global AI value chain. If execution falters, it will underline the challenges of building capital-intensive infrastructure at unprecedented speed.
What is clear is that Blackstone’s $10 billion commitment marks a turning point. The AI revolution is no longer just about software innovation—it is about who can finance, build and power the machines that make intelligence at scale possible.