Firmus secures 600MW energy deal in South Australia; reveals energy and water policies
Make us a preferred source
Make us a preferred source on Google
The news: AI infrastructure company Firmus has announced a 12-year wholesale energy supply agreement with commodity trading house Gunvor Group for 600 megawatts of firm electricity to support the next phase of its national AI factory rollout in South Australia.
The numbers: Under the agreement, Gunvor will support the development of 1.2 gigawatts of new renewable generation and 1.5 gigawatt hours of new battery storage by 2032 to supply Firmus’ planned South Australian expansion.
Firmus has committed to reducing its electricity consumption for up to 220 hours each year when wholesale electricity prices exceed agreed thresholds. This is aimed at freeing up electricity for other users and easing pressure on wholesale prices during periods of peak grid stress.
The agreement underpins the first phase of Firmus’ SA-based AI factory campuses at Tailem Bend and Stirling North, representing 2.7 gigawatts of planned capacity.
The context: The Singapore-headquartered company is planning to build a national network of AI factories across Tasmania, Melbourne, Canberra, Sydney and Perth, with the two SA locations recently confirmed as additional sites.
On Monday, Firmus announced fresh strategic partnership with its chip supplier and investor Nvidia, that will see it establish a new facility in Batam, Indonesia.
Tuesday’s announcement coincided with the launch of Firmus’ Australian Energy Policy and Australian Water Stewardship Policy, setting out how its large-scale AI infrastructure will support the country’s electricity system and minimise water consumption.
Firmus said its energy policy “goes beyond” the federal government’s national principles for AI data centres, published in March. The company said the policy translates the government’s expectations into “specific, measurable commitments for its Australian grid-connected operations”.
Firmus’ energy policy outlines six commitments, comprising:
- build with best-in-class energy efficiency
- demand response during periods of market stress
- invest in new firming infrastructure
- underwrite more renewable capacity than we contract
- paying a fair market price for energy
- covering our own transmission network costs.
What they 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,” said Firmus co-CEO Oliver Curtis.
“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.”
SA Premier Peter Malinauskas commented: “South Australia is leading the clean energy transition, and this project demonstrates how that leadership is attracting the industries of the future.
“It recognises the strategic importance of advanced AI and digital infrastructure to the state’s economic future, bringing new jobs, new investment, and long-term opportunities to regional South Australia.”
The source: Firmus media release
