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CDC Data Centres pulls pin on $73.3 billion AI data centre partnership with Firmus

Firmus CEO says mutual decision to end Southgate partnership, with just 2.5% of project completed as $44 billion IPO looms

By LineZotpaper
Published
Read Time2 min
CDC Data Centres has abandoned its partnership with Firmus Technologies for a planned $73.3 billion artificial intelligence data centre rollout across Australia, with only a tiny fraction of the project delivered, according to reports. The collapse comes just 12 months after the deal was announced and as Firmus prepares for a potential $44 billion initial public offering on the ASX.

CDC Data Centres has ended its massive partnership with Firmus Technologies to build AI data centres worth $73.3 billion around Australia, with only about 2.5 percent of the project completed, business media startup Rampart reported.

CDC founder Greg Boorer told the podcast Rampart Talks that his company was unlikely to build further data centres for Firmus, according to Rampart.

In a statement to Startup Daily, Firmus CEO Oliver Curtis said the two companies “mutually agreed earlier this year” not to proceed with the Southgate partnership.

“The decision does not affect Firmus’ current development plans, contracted customer capacity, disclosed strategy or important international partnerships,” Curtis said.

The deal was struck about a year ago when Firmus, a budding ASX IPO candidate, announced plans for a network of AI data centres. The partnership’s termination comes as Firmus eyes a $44 billion IPO.

Neither company has disclosed the full reasons for the split, though Boorer’s comments suggest CDC saw limited appetite for further expansion under the arrangement.

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Analysis

Why This Matters

  • The collapse of a $73.3 billion infrastructure deal raises questions about Australia's ability to scale AI computing capacity quickly
  • Firmus' planned $44 billion ASX IPO now faces increased uncertainty, with investors likely to scrutinise the company's ability to deliver without CDC's backing
  • The decision signals potential cooling in the Australian data centre buildout market, which had boomed amid AI demand

Background

CDC Data Centres is one of Australia's largest data centre operators, while Firmus Technologies is an AI infrastructure startup that had positioned itself as a major player in the local market. The two companies announced a partnership about 12 months ago to build a network of AI data centres worth $73.3 billion across Australia, a deal that was seen as a cornerstone of Firmus' growth story ahead of its planned ASX listing. The partnership has now been terminated with only a small fraction of the capacity delivered.

Key Perspectives

Firmus Technologies: CEO Oliver Curtis says the mutual decision does not affect the company's current development plans, contracted capacity, strategy or international partnerships, suggesting the startup can proceed without CDC. CDC Data Centres: Founder Greg Boorer indicated the company was unlikely to build further data centres for Firmus, implying CDC was not willing to continue the aggressive expansion timetable. Investors and market observers: The deal's collapse may raise red flags about Firmus' ability to execute its ambitious rollout, potentially complicating its IPO plans and the broader Australian AI infrastructure narrative.

What to Watch

  • Whether Firmus secures an alternative data centre partner to replace CDC, and on what terms
  • The reaction of institutional investors when Firmus publishes its IPO prospectus, especially regarding the status of its buildout pipeline
  • Any further announcements from CDC about its own data centre strategy, which may indicate whether the industry is consolidating or pivoting

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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