en.Wedoany.com Reported - Firmus Technologies has signed a 12-year wholesale energy supply agreement with energy commodity trading company Gunvor Group, securing 600MW of stable power to support the next phase of Project Southgate, its development of a large-scale AI factory park in a remote area of Australia.
Under the agreement, Gunvor Group will support the development of 1.2GW of new renewable energy generation and 1.5GWh of battery energy storage by 2032 for Firmus's planned expansion in South Australia. The agreement includes a demand response commitment, where Firmus will reduce electricity consumption by up to 220 hours per year when wholesale electricity prices exceed agreed thresholds, alleviating demand during grid stress periods and providing more power to other users.
The agreement supports the first phase of Firmus's South Australian parks in Tailem Bend and Stirling North, which together have a planned capacity of 2.7GW. The agreement also includes a long-term offtake agreement with GreenPoint Energy for the Koolunga battery energy storage system near Brinkworth in mid-north South Australia, a 200MW/800MWh grid-forming battery that will account for more than half of Firmus's initial peaking capacity commitment.
Oliver Curtis, Co-CEO of Firmus Technologies, said the company is developing parks in remote areas of South Australia because these locations can simultaneously support large-scale AI infrastructure and the required energy investment. The agreement will help Firmus support new renewable energy generation, battery energy storage, and flexible electricity consumption. The Koolunga battery is the first project related to this strategy, and as Firmus develops the parks, it will increase grid peaking capacity. Oliver Curtis said the investment is about remote areas of South Australia, creating new infrastructure, supporting local jobs, strengthening the power system, while building the capabilities needed for Australia's next-generation AI. South Australian Premier Peter Malinauskas said the project reflects the state's efforts to attract investments related to clean energy, AI, and digital infrastructure, potentially bringing jobs and investment to remote areas.
This development follows Firmus's expansion into Indonesia. The company is planning a 360MW Nvidia DSX AI factory park in Batam with Singapore-based DayOne, supported by a computing partnership with Nvidia valid until 2034.
Firmus has also released its Australian Energy Policy and Australian Water Management Policy, outlining how it will manage the electricity and water demands of its AI infrastructure in Australia. These policies cover energy efficiency, renewable energy procurement, battery energy storage, demand response, grid costs, cooling technologies, and reporting. Firmus said its energy policy is based on the Australian government's March 2026 expectations for data center and AI infrastructure developers. The water management policy explains how the company will limit cooling water usage in Project Southgate, prioritizing dry cooling, site-specific water planning, use of recycled or non-potable water, and reporting water performance.
Hamish Kerr, Chief Mechanical Engineer at Firmus Technologies, said AI factories default to dry cooling technology, and cooling does not require water in most cases. The company expects its Launceston site's average annual cooling water usage to be equivalent to about 10 days of cooling demand, or roughly the annual water usage of 20 average households. Hamish Kerr said all sites in Project Southgate will adopt the same approach, with cooling and water usage adjusted based on local conditions. These policies apply to Firmus's owned and operated grid-connected sites in Australia, including new AI factory parks that will become operational in the future, and the company said it will report progress as part of its annual report.
