NVIDIA-backed datacenter builder Firmus raised $505 million in funding.

Firmus Technologies Pty, an Australian data center builder backed by Nvidia, raised $505 million in an investment round led by Coatue Management LLC. The deal values the startup at $5.5 billion, with Nvidia Corp., the top maker of AI accelerator chips, participating in the investment. The capital will support the rapid deployment of AI hardware based on forthcoming Nvidia computer technology across the Asia-Pacific region.

Firmus operates data center projects in Australia and Singapore and has raised $1.35 billion over the last six months, including this latest transaction. The company is spearheading an initiative called Southgate, which aims to build data center capacity in Australia powered by renewable energy, beginning with a facility in Tasmania. This site will house computers equipped with 36,000 Nvidia accelerator chips following its initial two rounds of technology deployments, with these powerful processors designed to develop and run AI models by processing vast amounts of data.

Nvidia, often working alongside venture capital investors, has invested billions of dollars in AI companies as part of a global effort to finance artificial intelligence infrastructure. The company's strategy reflects the explosive sales growth driven by the expanding AI industry.