SENNA

Blackstone Moves to Lock Down Firmus' Multibillion-Dollar Debt Package

Blackstone, the alternative asset management giant, is seeking to deepen its exposure to Australia's data center market, building on its $24 billion acquisition of hyperscale specialist AirTrunk last year.

According to sources familiar with the matter, Blackstone is in live negotiations to provide billions of dollars in financing to Firmus Technologies, an artificial intelligence infrastructure startup. The move comes after Firmus tripled its valuation to a staggering $6 billion earlier this month.

The deal would further cement Blackstone's position in the fast-growing data center sector, which has seen surging demand driven by the pandemic-fueled shift to remote work and cloud computing. Firmus, founded in 2018, has quickly emerged as a leader in AI-powered data infrastructure, providing services to major tech and finance firms.

"Blackstone sees Firmus as a strategic platform to capitalize on the exploding need for AI-enabled data processing and storage," said one source, who declined to be named discussing private negotiations.

The financing package Blackstone is negotiating is said to be in the multiple billions of dollars, underscoring the scale of Firmus' ambitions. The startup plans to use the funds to fuel its global expansion, including building new data centers in key markets like the U.S. and Europe.

"This isn't just about providing Firmus with capital - it's about Blackstone aligning itself with a leading player in the AI infrastructure space," the source added. "They want to be at the forefront of this technological shift."

Blackstone's move comes amid a flurry of dealmaking in the data center industry. Last year, the firm teamed up with other investors to acquire AirTrunk, one of Asia-Pacific's largest independent data center operators, for $24 billion.

That deal underscored the intense investor appetite for assets in the sector, which has been turbocharged by the pandemic. Global data center investment is expected to reach $200 billion annually by 2025, according to industry estimates.

Firmus, founded by a team of former Google and Amazon engineers, has rapidly established itself as a rising star in the AI infrastructure space. The startup's technology allows companies to process and store data more efficiently, leveraging advanced machine learning models.

"Firmus is at the bleeding edge of what's possible with AI-driven data management," said the source. "That's a big part of why Blackstone is so keen to partner with them and secure this financing package."