SYDNEY – OpenAI, the developer behind ChatGPT, has entered into a major agreement with Australian data centre operator NextDC to establish a US$4.6 billion (A$7 billion) artificial intelligence campus in Western Sydney.
The project, announced last week, represents one of the largest AI infrastructure investments in the Southern Hemisphere and is expected to accelerate Australia’s role in the global digital economy.
The facility will be located at Eastern Creek, on a 258,000-square-metre site owned by NextDC. Plans include a 550-megawatt hyperscale data centre and a GPU “supercluster” designed to support advanced AI workloads.
The centre will cater to major clients such as the Commonwealth Bank of Australia and retail giant Wesfarmers, while also serving government, defence, healthcare, and education sectors.
Australia’s federal government has welcomed the investment, describing it as a cornerstone of the country’s National AI Plan. Officials highlighted that the project will generate thousands of jobs during construction and in long-term technical, engineering, and operational roles.
The centre will also run on renewable energy through long-term power purchase agreements and employ cooling systems that do not rely on drinking water, reflecting a commitment to sustainability.
New South Wales Premier Chris Minns said the deal cements Sydney’s reputation as a global technology hub: “This announcement confirms NSW as the nation’s capital for innovation and a globally attractive investment destination.” The state already hosts more than 90 data centres, with another 20 under development.
OpenAI’s Chief Executive Sam Altman has been expanding the company’s footprint worldwide, positioning the Sydney hub as a strategic base in the Asia-Pacific region.
The initiative is part of the OpenAI for Countries programme, which aims to deliver sovereign AI infrastructure outside the United States.
Analysts note that the move strengthens OpenAI’s rivalry with tech giants such as Google and Meta, while diversifying its supply chain amid rising hardware costs.
Beyond infrastructure, OpenAI has pledged to support workforce development, with plans to train 1.2 million Australian workers in AI-related skills starting in 2026. This aligns with government ambitions to spread the benefits of AI adoption across industries and public services.
The announcement also boosted investor confidence. NextDC’s shares surged by more than 10% following the deal, underscoring market enthusiasm for Australia’s growing role in AI infrastructure.
With construction expected to begin in the coming years, the Sydney AI hub is set to become a critical part of the global race for computing power, positioning Australia as a leader in sovereign AI capabilities.
