Aussie AI cloud provider Firmus has signed a 600MW energy supply agreement with Gunvor Group in South Australia.
Set to run for 12 years, under the agreement, Gunvor will support the development of 1.2GW of new renewable generation and 1.5GWh of new battery storage by 2032 to supply Firmus' planned South Australian expansion as part of "Project Southgate."
Firmus has agreed to a demand response commitment under which Firmus will reduce its electricity consumption by up to 220 hours yearly when wholesale electricity prices exceed thresholds in an effort to ease pressure during periods of grid stress.
Firmus will also offtake from GreenPoint Energy's Koolunga Battery Energy Storage System (BESS). Located near Brinkworth in South Australia's Mid North, the BESS offers 200MW/800MWh.
The power agreement will support Firmus' first phase of its South Australia AI data center campuses, located at Tailem Bend and Stirling North and with a planned combined capacity of 2.7GW.
Oliver Curtis, co-CEO of Firmus Technologies, said: “We're building our AI Factories in regional South Australia because they're the right locations for large-scale AI infrastructure and the energy investment that goes with it.
“Our South Australia energy agreement puts our commitments into practice, backing new renewable generation, major battery storage and flexible energy use that supports the grid. Koolunga is the first example of that commitment already underway - a major new battery that strengthens the electricity system while we build.
"This is about investing in regional South Australia - creating new infrastructure, supporting local jobs and strengthening the electricity system while building the capacity Australia needs for the next generation of AI. We're committed to paying our own way and ensuring these projects deliver lasting benefits for the communities that host them."
Project Southgate is Firmus' AI data center buildout strategy across Australia. In February 2026, the company secured $10 billion in a debt financing facility led by investment firms Blackstone and Coatue for the initiative. A further $505 million equity investment led by Coatue was made in April 2026.
Firmus first used the term ‘Project Southgate’ in September last year to describe an “AI factory” campus in Launceston, Tasmania. At the time, Firmus said the project, which it worked on in partnership with the Tasmanian Government, would deliver a combined 90MW of AI infrastructure by 2026. Earlier this month, Firmus was reported to be targeting 288MW in Tasmania.
Just a month later, Firmus announced a planned expansion into mainland Australia in partnership with CDC Data Centres under the Project Southgate moniker, which it began publicly terming as a wider initiative. The company said this partnership would extend its capacity to 1.6GW, and announced additional deployments in Sydney, Canberra, Melbourne, and Perth.
This now seems to have been expanded again, with the projects in South Australia targeting 2.7GW alone. DCD has contacted Firmus for clarification on the current scale of Project Southgate.