AI data centre developer and operator Firmus Technologies has inked a landmark 12-year wholesale energy supply agreement with Gunvor Group for 600MW of firmed electricity to support the next phase of Project Southgate—its strategy to develop large-scale AI factory campuses across regional Australia.
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.
Related article: Blue Mountains residents score win against data centre
The agreement also includes a demand response commitment under which Firmus will reduce its electricity consumption for up to 220 hours each year when wholesale electricity prices exceed agreed thresholds. By lowering demand during periods of peak grid stress, Firmus will help free up electricity for other users while easing pressure on wholesale prices.
The agreement underpins the first phase of Firmus’ South Australian AI Factory campuses at Tailem Bend and Stirling North, representing 2.7GW of planned capacity. It is the first major commercial agreement supporting the commitments set out in Firmus’ Australian Energy and Water Policies.
The agreement includes a long-term offtake supporting GreenPoint Energy’s Koolunga Battery Energy Storage System (BESS). Located near Brinkworth in South Australia’s Mid North, the 200MW/800MWh grid-forming battery will represent more than half of Firmus’ initial firming capacity commitment.
The regional campuses are intended to bring long-term investment and skilled employment to South Australia while locating large industrial infrastructure in areas with strong renewable energy resources and existing transmission capacity.
Firmus Technologies co-CEO Oliver Curtis saidm “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.
Related article: US AI firm to build Australia’s biggest data centre in SA
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.”
