AI infrastructure company Firmus Technologies has signed a wholesale energy supply agreement with global energy trader Gunvor Group for 600 megawatts (MW) of firm electricity to supply its South Australian expansion.
The deal is part of the first phase of Project Southgate, Firmus’ strategy to construct 2.7 gigawatts (GW) of planned large-scale AI Factory campuses across regional campuses in Tailem Bend and Stirling North.
To power these energy-intensive data hubs sustainably, Gunvor will underwrite the development of 1.2 GW of new renewable generation and 1.5 gigawatt-hours (GWh) of new battery storage across the state by 2032.
The agreement also includes a long-term offtake for GreenPoint Energy’s Koolunga battery energy storage system (BESS).
Located near Brinkworth in South Australia’s Mid North, the 200 MW / 800 MWh grid-forming battery will provide more than half of Firmus’ initial contracted firming capacity and is slated for commercial operations in early 2028.
Under the offtake agreement, GreenPoint Energy will secure long-term revenue support for the project, while Gunvor will secure dispatchable storage capacity and risk management capability to support customer delivery. Koolunga is targeted for commercial operations in the first quarter of 2028.
Addressing potential grid strain, Firmus has committed to a flexible demand response structure. The company will reduce its electricity consumption for up to 220 hours each year when wholesale prices spike, easing pressure on the local grid and freeing up power for other users during peak periods.
Premier Peter Malinauskas welcomed the announcement, stating South Australia’s clean energy transition is actively 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,” Malinauskas said.
Firmus Co-CEO Oliver Curtis noted that AI will become one of Australia’s largest electricity consumers, adding that infrastructure must fund, rather than fight, the clean energy transition.
“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,” Curtis said.