Data centre developer Firmus Technologies has announced a landmark 12-year energy supply agreement with global commodities trader Gunvor Group. The deal secures 600 megawatts of firm electricity to power Firmus's planned artificial intelligence factories in South Australia. This partnership aims to meet the immense energy demands of AI while actively supporting Australia's renewable energy transition.
A Strategic Partnership for AI Growth
The long-term agreement ensures a stable power supply for Firmus's South Australian operations, including campuses at Tailem Bend and Stirling North. Gunvor will manage the electricity supply from mid-2027, providing a foundation for Firmus's expansion. This arrangement links large-scale electricity demand directly with renewable procurement and grid-firming infrastructure.
A cornerstone of the deal is Gunvor's commitment to underwrite 1.2 gigawatts of new renewable generation by 2032. The company will also support the creation of 1.5 gigawatt-hours of new battery storage capacity. This investment is intended to unlock the long-term renewable and firming capacity required for Australia's evolving energy grid.
This integrated supply model represents a novel commercial solution for the energy-intensive AI sector. It shows how commodity traders can mobilize capital and manage risk to support strategic infrastructure projects. The structure is positioned as a blueprint for future customer-led energy solutions across the National Electricity Market.
Anchoring the Deal with Battery Storage
The agreement is anchored by a long-term offtake arrangement supporting GreenPoint Energy’s Koolunga Battery Energy Storage System (BESS). This 200-megawatt, 800-megawatt-hour project is a critical component of the initial firming portfolio. It is expected to fulfill more than half of Firmus's initial contracted battery firming requirement.
For GreenPoint Energy, the offtake agreement provides crucial long-term revenue support, enabling the Koolunga project to proceed. For Gunvor, it secures dispatchable storage capacity and a vital risk management tool to ensure reliable delivery. This highlights the importance of strategic partnerships in developing large-scale energy storage systems.
Located in South Australia’s Mid North, the Koolunga BESS is targeted for commercial operations in early 2028. South Australian Premier Peter Malinauskas praised the project, noting how the state's leadership in clean energy attracts future-focused industries. The battery will strengthen the electricity system while supporting new investment and jobs in the region.
Firmus's Commitment to Sustainable Operations
Coinciding with the announcement, Firmus released new policies to address the environmental impact of data centres. The energy policy includes a pledge to support two megawatts of new renewable generation for every one megawatt it contracts. The company is also targeting a high Power Usage Effectiveness rating of 1.15 or lower.
A key feature of the agreement is a demand response mechanism, committing Firmus to reducing its consumption during peak grid stress. The company will curtail its load for up to 220 hours annually when wholesale prices exceed certain thresholds. This flexibility is designed to free up electricity for other users and help ease pressure on the power grid.
While the company's new water policy states an expectation of "strong water efficiency," its projects face scrutiny over water consumption. Concerns have been raised, particularly for a planned Tasmanian facility, about potential water usage during hot weather. This highlights the broader environmental challenges the rapidly growing data centre industry must navigate.
This comprehensive agreement between Firmus and Gunvor marks a significant step in powering the AI revolution sustainably in Australia. By integrating large-scale energy demand with commitments to new renewables and battery storage, the partnership sets a potential precedent. It aims to show that the power needs of AI can accelerate, rather than hinder, the transition to a cleaner energy future.