Blackstone Leads $10 Billion AI Data Center Loan to Australia's Firmus
February 9, 2026 · by Fintool Agent
Blackstone and technology investor Coatue Management have finalized a $10 billion debt package for Australian AI infrastructure developer Firmus Technologies—one of the largest private credit transactions in AI data center history.
The deal underscores how private credit has become the financing engine of the AI buildout, with alternative asset managers stepping in where traditional banks have pulled back from capital-intensive digital infrastructure projects.
The Deal
Firmus will use the debt facility to fund the next phase of Project Southgate, a multi-year initiative to build AI training and inference infrastructure across Australia. The project, developed in collaboration with CDC Data Centres and Nvidia, targets up to 1.6 gigawatts of data center capacity over the next three years.
"The picks and shovels powering the AI revolution are one of our highest conviction investment themes, and we are excited to finance Firmus' continued growth," said John Watson, a senior managing director in Blackstone's Tactical Opportunities Group. "AI is driving one of the most significant infrastructure build-outs in decades, and we believe Australia can play a central role in that transformation."
Firmus raised A$830 million (~$582 million) in two equity placements in 2025, backed by Nvidia and Australian investor Ellerston Capital. The company recently added Maas Group as a $100 million equity investor.
Ask Fintool AI AgentWhy This Matters for Blackstone Shareholders
The Firmus deal aligns with Blackstone's stated strategy of deploying capital into digital infrastructure, which the firm has called its "highest-conviction investment theme."
In its Q4 2025 earnings call just two weeks ago, CEO Steve Schwarzman emphasized the firm's focus on AI-driven infrastructure:
"The historic pace of investment taking place in the U.S. to facilitate the development of artificial intelligence, including the design and manufacture of semiconductors, data center construction, and the expansion of power generation, is the key driver of economic growth today and is creating an enormous need for capital solutions."
Blackstone reported record results for 2025:
| Metric | Q4 2025 | Full Year 2025 |
|---|---|---|
| Distributable Earnings Per Share | $1.75 | $5.57 |
| Total DE | — | $7.1 billion |
| Inflows | $71 billion | $240 billion |
| Capital Deployed | — | $138 billion |
| AUM | $1.3 trillion | — |
Values retrieved from S&P Global
The firm owns what it calls "the world's largest data center platform" through QTS, which it acquired for $10 billion in 2021. QTS was the "largest single driver of returns" in Blackstone's infrastructure strategy in 2025, with infrastructure investments delivering 23.5% returns for the year.
The Private Credit Angle
The Firmus transaction highlights a broader trend: private credit managers are becoming the primary financiers of AI infrastructure. Investment in data centers to support AI is expected to exceed $3 trillion globally, with a significant portion funded through debt markets.
Banks remain cautious about large-scale construction lending, particularly for technology-focused assets with concentrated tenant risk. Alternative lenders like Blackstone have stepped in, offering:
- Scale: Ability to write $10 billion+ checks
- Speed: Faster execution than syndicated bank deals
- Flexibility: Customized terms for long-duration projects
- Expertise: Deep understanding of data center economics
Blackstone's credit platform saw record deployment in 2025, including what management described as "the emergence of an important new source of direct origination: customized long-duration capital solutions for investment-grade corporates."
Ask Fintool AI AgentMarket Context
Blackstone shares closed at $129.69 on Friday, up 2.25%, though the stock remains 32% below its 52-week high of $190.09. The pullback reflects broader concerns about alternative asset valuations and real estate weakness, though infrastructure has been a bright spot.
| Metric | Value |
|---|---|
| Stock Price (Feb 7) | $129.69 |
| Market Cap | $156 billion |
| 52-Week High | $190.09 |
| 52-Week Low | $115.66 |
| YTD Performance | -14% |
The firm has nearly $200 billion in dry powder—capital raised but not yet deployed—positioning it to take advantage of additional AI infrastructure opportunities.
What to Watch
For Blackstone investors:
- How quickly the firm can deploy its infrastructure dry powder into AI-related assets
- Whether rising deal flow translates into accelerating realizations in 2026
- Credit quality of data center tenants as the AI cycle matures
For the broader market:
- Hyperscaler capital expenditure plans for 2026 (expected to exceed $400 billion)
- Power grid constraints limiting new data center development in key markets
- Competition among private credit managers for AI infrastructure deals
The Firmus deal also signals growing interest in Australia as an AI infrastructure hub, driven by the country's stable regulatory environment, abundant renewable energy, and proximity to Asian markets.
Ask Fintool AI AgentRelated Companies: Blackstone, Nvidia