Cool change for AI factory
The developer of a next-generation AI data centre in Tasmania has raised funding as it seeks to address power and water-security concerns.
Australian startup Firmus Technologies has raised $330m in funding to build a new AI factory campus that runs on renewable power.
The equity funding was backed by large investors that included Ellerston Capital, high-end chip-maker NVIDIA as well as institutional and high-net-worth Australian investors, with the aim of accelerating the rollout of more sustainable AI infrastructure.
Many climate experts warn that the rapid growth of AI data centres could outstrip efforts to modernise energy infrastructure, threatening future energy and water security. AI chips like GPUs consume significantly more power than traditional CPUs, placing heavy demands on cooling systems, driving up electricity use, and straining local water supplies.
“There is still much we don’t know about AI’s environmental impact, but some of the data is concerning,” says Golestan Radwan, Chief Digital Officer at the United Nations Environment Programme. “We must ensure AI’s overall impact on the planet is positive before scaling up its deployment.”
Firmus Technologies says the new funding will accelerate development of Project Southgate, its flagship partnership with the Tasmanian government located in the recently established Green AI Factory Zone in Launceston.
The AI Factory campus in Tasmania will be powered by renewable energy to support the sustainable expansion of AI infrastructure and deploys more efficient cooling technology, according to Firmus.
“AI Factories are purpose-built to power, train and inference artificial intelligences. With Tasmania’s clean energy and our AI Factory platform, we believe this will be the most cost-effective, sustainable AI facility in the world,” Firmus Co-CEO Oliver Curtis said.
"With efficiency as our foundation, we’re working to change the conversation: giving Australians genuine agency over how AI becomes part of our country’s future."
Firmus estimates that its liquid-cooled AI Factories only use half the energy and cost half as much to build as legacy data centre infrastructure.
Their physical design is based on what Firmus describes as "advanced, liquid-everywhere data halls" which use immersion, 1-phase and 2-phase cold plate cooling platforms.
Firmus, which has a system already operational in Singapore, says its Project Southgate campus will be the largest deployment of its AI Factory platform to date.
“Our mission is to create the most efficient AI infrastructure,” Tim Rosenfield, Co-CEO of Firmus Technologies said. “The Firmus AI Factory is built for peak efficiency in every form – cost, energy, water, and space.
"With efficiency as our foundation, we’re working to change the conversation: giving Australians genuine agency over how AI becomes part of our country’s future.”
Tasmanian Premier Jeremy Rockliff said the establishment of the Green AI Factory Zone marked a new era of investment and innovation for Tasmania.
"By unlocking access to renewable energy for advanced digital industries, Tasmania is leading the way in sustainable infrastructure and sovereign capability for all of Australia,” Rockliff said.
AI data centres require a massive, continuous energy supply due to the high computational demands of training and running large models. Firmus says its proprietary AI Factory technology is an energy-efficient alternative that can be constructed for significantly less cost than legacy data centre infrastructure. It says Project Southgate in Tasmania will comprise 36,000 NVIDIA GPUs built over two stages and optimised for compute density, energy efficiency, and AI workload flexibility.
