Blackstone and Coatue Back Australian AI Startup Firmus with $10 Billion Loan for Data Center Expansion

Blackstone Inc.-led funds and technology investment firm Coatue Capital have committed a $10 billion loan to Australian AI infrastructure startup Firmus, fueling one of the largest private credit deals in Australia's history. The financing will accelerate Firmus' data center rollout across the country as demand for AI compute resources reaches unprecedented levels.

Firmus specializes in building and operating hyperscale data centers optimized for AI workloads. Unlike traditional facilities, its infrastructure incorporates liquid cooling systems and high-density power configurations capable of supporting clusters of thousands of AI accelerators. This technical specialization positions Firmus to serve cloud providers and enterprises running large language model training and inference operations.

The massive loan arrives as global investment floods into AI infrastructure. Data center construction costs have soared 30% year-over-year due to shortages of power infrastructure, specialized cooling equipment, and transformer components. Firmus' Australian focus is strategic: The country offers abundant renewable energy sources critical for sustainable operations and geographic advantages for Asia-Pacific AI deployments. However, development hurdles remain, including lengthy grid connection wait times and competition for skilled engineers.

Private credit has emerged as a preferred financing mechanism for such capital-intensive projects. Traditional bank lending often imposes restrictive covenants for infrastructure builds, while private credit funds can offer more flexible terms aligned with long-term construction cycles. This $10 billion facility reportedly includes milestone-based disbursements tied to specific construction phases and revenue targets.

Market context underscores the urgency: AI data center capacity must grow 300% by 2030 to meet projected demand, according to McKinsey analysis. Firms like Firmus aim to capture this opportunity by building specialized facilities faster than hyperscalers can expand their own footprints. The loan signals investor confidence in Firmus' site acquisition strategy and engineering capabilities, though execution risks persist given Australia's complex permitting environment.

For Coatue and Blackstone, the deal represents deepening involvement in AI's physical layer. Both firms have separately invested in AI chip startups and cloud platforms, making Firmus' infrastructure a strategic complement. If successful, the expansion could establish Australia as a hub for energy-intensive AI workloads, potentially attracting secondary investments in semiconductor manufacturing and AI model development locally.

The scale of financing highlights how private markets are enabling infrastructure bets too large for traditional venture capital. As AI reshapes global compute demands, similar deals will likely emerge across regions with favorable power and policy conditions, though few may reach this magnitude.