Firmus invests US$300 million in a long‑term capacity deal for a new subsea cable that will link Australia directly to the United States.
Deal locks in 150 Tbps of bandwidth for at least 25 years
The agreement gives the AI data‑centre builder rights to 150 terabits per second on the cable system, with the commitment running for a quarter‑century after the line becomes operational. The investment is slated to fund the construction of the route, which is expected to start service in late 2028.
Under the contract, the partner will provide the physical infrastructure while the company supplies the upfront capital. The two parties described the partnership as a “natural fit” in a joint statement.
According to the filing, the cable will be the longest continuous undersea optical link ever built, stretching across more than 37,000 kilometres of ocean floor that the operator already has in place or under construction.
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Strategic implications for Australian AI infrastructure
The firm has raised roughly $3 billion from investors in the past year and is preparing an initial public offering slated for October. Its roadmap includes constructing “AI factories” across the country and the broader Asia‑Pacific region.
Industry observers note that domestic AI workloads are projected to generate petabits of data each second, creating a clear demand for high‑capacity trans‑continental links. The operator’s business model counts on such demand to justify the extensive undersea network.
In addition to the new trans‑Pacific route, the company already holds a separate agreement to double Tasmania’s undersea cable capacity to the mainland, using a link that will tap into the operator’s SMAP system. That arrangement will support the firm’s plans for data‑centre development on the island.
While the funding round valued the firm at about $10.5 billion, community opposition to data‑centre projects has surfaced in recent months, especially around proposed sites in Tasmania. The Labor government has signalled its support for the sector, publishing expectations that data‑centre expansion should align with Australian values.
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Comparing this move to earlier Australian cable projects shows a shift toward capacity that can handle AI‑driven traffic rather than just traditional internet use. The scale of the new link suggests the country is positioning itself as a hub for high‑speed AI data exchange, a step beyond the modest upgrades of the past.
Numbers from the contract: 150 Tbps of dedicated capacity, a $300 million investment, and a 25‑year term. The system will be ready by the end of 2028, making it the first direct Australian‑US connection.
In a statement, the co‑chief executive said the secured bandwidth “gives us the scale and performance to connect Australian AI infrastructure directly with the United States, ensuring the AI infrastructure we build here can reliably serve the world’s leading AI natives.”
The operator’s founder and co‑chief executive added that millions of AI GPUs are expected to be deployed across the region in the next two to three years, generating massive data flows that the new link is designed to accommodate.
