NEXTDC and OpenAI to Develop Hyperscale AI Campus and GPU Supercluster in Sydney

Australia’s technology infrastructure received a major boost as NEXTDC announced it has signed a memorandum of understanding with OpenAI to jointly plan, develop, and operate a hyperscale AI campus and GPU supercluster at its S7 site in Sydney. The collaboration brings together Australia’s leading data centre operator and the U.S.-based artificial intelligence company best known for creating ChatGPT.

The S7 facility, located in Eastern Creek, was acquired by NEXTDC in October 2024 for approximately A$353 million (US$233.37 million). With a potential capacity of 550 megawatts, the site is set to become one of the most powerful AI-dedicated campuses in the Asia-Pacific region. The project will include a GPU supercluster designed to support advanced AI workloads, which require massive computing power to train and operate large language models.

This strategic partnership reflects a broader global trend where AI companies are aligning with data infrastructure providers to meet the growing demands of large-scale machine learning. NEXTDC and OpenAI will collaborate on the technical design, energy efficiency, and operational planning of the new facility to ensure it can scale with future AI innovation.

The announcement comes at a time of rapid growth in AI-related infrastructure spending. NEXTDC recently reported a 71-megawatt increase in contracted utilisation, bringing its total to 316 megawatts. This reflects heightened demand from hyperscale cloud providers and AI-driven enterprises. The surge has placed data centre providers at the forefront of global digital transformation efforts.

Industry analysts view this partnership as a major milestone in Australia’s bid to become a regional leader in AI and data processing. The project not only strengthens Australia’s position in the global AI race but also enhances its strategic value in the Indo-Pacific digital supply chain.

($1 = 1.5126 Australian dollars)