Peter Smith
Nvidia (NVDA) is making a significant move into renewable-powered AI infrastructure through a partnership with Australian startup Firmus Technologies. The two companies have launched Project Southgate, a $2.9 billion initiative aimed at building large-scale AI data centers in Melbourne and Tasmania.
Nvidia and Firmus Target Global AI Growth
The data centers will run on wind, solar, and hydro energy and feature Nvidia's GB300 chips. Wall St Engine recently highlighted that the first phase is expected to consume around 150 megawatts of power, with operations set to begin by April 2026. Firmus co-CEO Oliver Curtis described Southgate as "a blueprint for how Australia can lead the world in scalable, sovereign AI infrastructure."
By 2028, the project could scale to 1.6 gigawatts, potentially reaching a $47 billion valuation and adding nearly 5% to Australia's total power capacity.
This massive investment underscores Australia’s growing ambition to position itself as a global AI powerhouse. If successful, Southgate could become a model for sustainable, high-performance computing infrastructure worldwide.
Chart Analysis: Nvidia Stock in Consolidation
The chart shows Nvidia's stock consolidating after a strong rally earlier in 2025. Support sits around $1,050, providing a solid base, while a break above $1,150 could push the stock toward the $1,200–$1,250 range. High volume levels suggest strong institutional interest, and this price action reflects healthy consolidation as investors remain confident in Nvidia's growth trajectory.
Why It Matters for Nvidia and Australia
Nvidia's leadership in the AI chip market demands massive computing capacity. By partnering with Firmus to link GPU deployment with renewable energy infrastructure, Nvidia strengthens its ability to scale sustainably. For Australia, Southgate marks a pivotal moment - an opportunity to establish itself as a global hub for clean AI infrastructure while reducing reliance on foreign technology and driving local energy innovation.
Peter Smith
