Firmus Technologies Announces US$300 Million Investment in APX East Submarine Cable System
Australian artificial intelligence infrastructure firm Firmus Technologies has finalized a US$300 million (approximately A$416 million) cornerstone investment in the APX East submarine cable system, owned by telecommunications infrastructure provider SUBCO. Announced this week, the deal secures up to 150 terabits per second of dedicated Trans-Pacific capacity for a 25-year term. This strategic infrastructure project, which aims to connect Firmus’s Australian “AI Factory” network directly to United States markets, is scheduled to become operational in the fourth quarter of 2028. The initiative reflects a growing trend in digital infrastructure development, often tracked by platforms like Google News, as companies race to establish the high-speed connectivity required to support large-scale AI compute workloads.
The investment is designed to position Australia as a global hub for AI processing rather than a mere consumer of international services. By establishing a direct fiber optic highway, Firmus aims to export “AI tokens”—the output of intensive computational processes—to global clients. The APX East system is noted for its advanced technical design, which SUBCO describes as the world’s longest subsea optical path capable of functioning without electrical regeneration. This architecture is intended to reduce latency and improve reliability, two factors critical for hyperscale AI operations. The agreement strengthens the existing commercial relationship between the two entities, following Firmus’s earlier involvement in underwriting SUBCO’s Bernacchi-1 cable in Tasmania.
This commitment follows a period of significant capital expansion for Firmus, including a recent US$2 billion equity raise that valued the company at more than US$10.5 billion. Backed by high-profile investors such as Blackstone, Coatue Management, NVIDIA, and Jane Street, the firm is accelerating the rollout of its Australian data center campuses. According to Firmus co-CEO Tim Rosenfield, the infrastructure serves as a long-term investment in Australia’s digital economy, leveraging the nation’s renewable energy resources and expanding GPU capacity. Bevan Slattery, founder and co-CEO of Brisbane-based SUBCO, stated that the partnership addresses the shifting demand patterns for subsea routes, emphasizing that the next generation of AI development will require unprecedented levels of secure, high-capacity connectivity across the Indo-Pacific region.
As Firmus continues to scale its operations, the collaboration with SUBCO underscores a broader strategic effort to align Australian technical infrastructure with the needs of global AI-native enterprises. By securing long-term, high-bandwidth access, the company intends to facilitate the seamless transfer of complex data, effectively bridging the geographical gap between Australian-based AI compute facilities and international markets. The APX East project remains a central component of SUBCO’s broader effort to expand Australia’s role as a major digital gateway, building upon the company’s previous successes with the INDIGO and Oman Australia cable systems.
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