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Firmus Technologies and CDC Data Centres have ended their Project Southgate collaboration, according to Data Center Dynamics (DCD), which reported on 6 October 2026 that 42MW had been deployed at CDC’s Melbourne data centre. The site will not reach the 150MW previously anticipated. The original 1.6GW target was a plan announced in 2025—not capacity delivered under the collaboration.
What happened to Project Southgate?
DCD reported that Firmus and CDC had ended their collaboration and that 42MW was deployed at CDC’s Melbourne facility. DCD also reported that the site would not reach the previously anticipated 150MW. The available report does not specify the technical composition or allocation of the 42MW, and no official joint termination announcement was identified in the cited coverage. DCD’s 6 October 2026 report
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Firmus co-CEO and co-founder Oliver Curtis told w.media that the companies “mutually agreed earlier this year not to proceed with the previously proposed Southgate development partnership.” Curtis also said the decision would not affect Firmus’s current development plans, contracted customer capacity, disclosed strategy or international partnerships. That is Firmus’s stated position; it does not independently confirm the timing, funding or delivery of those plans. w.media’s report quoting Curtis
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DCD attributed to CDC CEO Greg Boorer concerns about Firmus’s expansion in Asia, funding and scalability as factors in the companies moving apart. DCD attributed that account to the Australian Financial Review (AFR); it is secondary reporting rather than a publicly established joint explanation from Firmus and CDC. The available accounts do not disclose contract terms or provide enough detail to establish the companies’ private motivations or the financial consequences of ending the partnership. DCD’s account
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How the 42MW compares with the original plan
Firmus announced Southgate in October 2025 as an Australian AI Factory rollout developed with CDC and NVIDIA. Its targets were ambitious, but they were announcement-era plans; they should not be read as current delivery commitments after the reported end of the collaboration.
| Figure | What it described | Status |
|---|---|---|
| 1.6GW through 2028 | Firmus’s planned overall Southgate capacity, announced in October 2025. | Historical target, not reported delivered capacity. Firmus announcement |
| Up to 150MW | Early Tasmania and Melbourne stages described by Firmus in October 2025; DCD later reported CDC’s Melbourne site would not reach the previously anticipated 150MW. | Planned scale, not the reported deployment. Firmus announcement; DCD report |
| 42MW | Capacity DCD reported deployed at CDC’s Melbourne data centre as of its 6 October 2026 report. | Reported deployment; the cited coverage does not provide a technical breakdown. DCD report |
Firmus’s October 2025 announcement also described an initial A$4.5 billion investment with potential scale-up to A$73.3 billion. Those figures were announcement-era investment plans, not evidence of money spent or a current funding commitment. Firmus announcement
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CDC’s 16 October 2025 announcement said the first stage was then expected to go live within six months, feature 18,500 NVIDIA GB300 GPUs and name NVIDIA as an anchor customer. That announcement described an intended schedule and configuration; it does not confirm that the phase went live as described. CDC’s 16 October 2025 announcement
CDC described its intended Southgate infrastructure as Australian-owned, using 100% renewable energy and operating with near-zero water consumption. These were company-stated aims, not independently verified operating results. CDC founder and CEO Greg Boorer said the company was proud to provide the project’s data-centre infrastructure and help position Australia as a leader in sustainable AI. CDC announcement
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What is known about Southgate’s future?
The collaboration’s end means the original CDC-hosted Southgate rollout should not be treated as proceeding to its announced 1.6GW scale. Firmus says the separation does not affect its broader plans or contracted customer capacity, but the cited accounts do not establish where the remaining planned capacity will be built, whether it will be built, or on what schedule. They also do not quantify the project’s financial or operational consequences.
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