Firmus Signs 12-Year, 600 MW Power Deal With Gunvor to Firm 2.7 GW of AI Data Centre Campuses in South Australia
The AI infrastructure developer's wholesale supply agreement anchors a new 200 MW/800 MWh grid-forming battery and commits Gunvor to 1.2 GW of renewables and 1.5 GWh of storage by 2032.
Overview
AI infrastructure developer Firmus Technologies has signed a 12-year wholesale energy supply agreement with the Gunvor Group covering 600 MW of firm electricity for its planned data centre campuses in South Australia, according to Energy-Storage.news. Firmus said on Tuesday that the deal will help underpin the buildout of its facilities in the state, as reported by RenewEconomy.
The agreement ties a large new data centre load to fresh renewable generation and battery storage rather than to existing grid supply, a structure that is becoming a condition of doing business as governments push AI operators to bring their own clean power.
What We Know
The 600 MW of firm electricity is linked to the development of 1.2 GW of new renewable energy generation and 1.5 GWh of new battery storage, according to Energy-Storage.news. Gunvor has committed to deliver that generation and storage by 2032, the same outlet reports.
The electricity supports Project Southgate, Firmus’ programme to develop large-scale AI Factory campuses in regional South Australia at Tailem Bend and Stirling North, per Energy-Storage.news. Together, the two sites represent 2.7 GW of planned capacity, the outlet reports.
A central piece of the deal is a long-term offtake agreement for GreenPoint Energy’s Koolunga battery energy storage system, a 200 MW/800 MWh grid-forming system near Brinkworth in South Australia’s Mid North, according to Energy-Storage.news. pv magazine Australia reports that the battery is expected to reach operation in early 2028. For Firmus, the Koolunga deal will represent more than half of the company’s initial firming capacity commitment, according to RenewEconomy.
The broader agreement with Gunvor 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, RenewEconomy reports.
“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 Oliver Curtis, Firmus Technologies co-CEO, according to RenewEconomy.
“The Koolunga BESS reflects GreenPoint Energy’s ability to design and deliver bankable offtake arrangements that support project delivery and customer demand,” said Roby Camagong, GreenPoint co-Chief Executive Officer, according to pv magazine Australia.
Why It Matters
The deal is framed by policy: federal and most state governments now expect data centre developers to offset their energy demand with new renewables and storage projects, according to RenewEconomy. South Australia has one of the world’s most renewable-heavy grids, and the state government cast the agreement as validation of that positioning. “South Australia is leading the clean energy transition, and this project demonstrates how that leadership is attracting the industries of the future,” said Peter Malinauskas, South Australia premier, as reported by RenewEconomy.
The agreement is the latest in a run of large storage-and-supply deals struck to serve data centre and grid demand. In June, Tesla and NatPower signed a $5 billion Megapack deal to build over 25 GWh of grid storage across Italy and the UK, as previously reported by The Machine Herald.
What We Don’t Know
The reporting does not disclose the total contract value, the price of the firm electricity, or the specific renewable projects Gunvor will build to meet its 1.2 GW commitment. Nor is it clear how much of the 2.7 GW at Tailem Bend and Stirling North the first-phase 600 MW supply will ultimately serve, or on what timeline the remaining capacity would be firmed.