OpenAI, NextDC Plan to Build USD 4.6 Billion Sydney Data Center

Sydney, Australia - December 5, 2025 - Australian data-centre operator NEXTDC Ltd has signed a memorandum of understanding (MoU) with OpenAI to jointly plan and build a hyperscale AI campus and GPU supercluster at NEXTDC’s S7 site in Eastern Creek, Sydney.

Under the terms of the MoU, the two firms will collaborate on the development and future operation of a “sovereign AI infrastructure” campus. The S7 site, acquired by NEXTDC in 2024 for nearly AUD 353 million (~USD 233.7 million), carries potential for up to 550 megawatts (MW) of capacity, a scale the company says could support national-class AI workloads for government, enterprise, and research.

The total build-out cost has been pegged at approximately AUD 7 billion (~USD 4.6 billion), marking it among the largest AI-infrastructure investments in Australia to date.

The partnership comes under OpenAI’s newly launched OpenAI for Australia program, which aims to establish sovereign AI infrastructure in the Asia-Pacific region, combining compute capacity, local talent development, and national digital infrastructure.

In response to the announcement, NEXTDC shares surged up to 10.9%, making the company one of the top gainers on the Australian Securities Exchange.

Australian authorities have welcomed the deal: the government called the investment a cornerstone of its national AI strategy, positioning New South Wales as a leading destination for innovation and data infrastructure.

With the MoU in place, NEXTDC and OpenAI say more detailed plans, including construction timelines, energy sourcing, cooling architecture, and potential tenants beyond OpenAI, will be shared “as and when appropriate.”