Latest news

05.12.2025

OpenAI and NextDC to Build AI Hub in Sydney

Illustration for: OpenAI and NextDC to Build AI Hub in Sydney

OpenAI, the creator of ChatGPT, and an Australian data center operator have partnered to establish a multibillion-dollar AI center in Sydney.

NextDC, based in Brisbane, announced on Friday (December 5) that it had signed a memorandum of understanding with OpenAI to build an AI campus and a “supercluster” of graphics processing units.

The companies will work together on the planning, development, and management of the AI infrastructure project in western Sydney, according to a statement from NextDC.

Don’t miss out on the latest updates. Follow KT on WhatsApp Channels.

NextDC shares rose 4.1% during early afternoon trading.

The Australian government stated that the Aus$7 billion (US$4.6 billion) investment will generate thousands of direct and indirect jobs during construction, as well as ongoing roles in technical, manufacturing, engineering, and operations.

The initiative will utilize long-term power purchase agreements for new renewable energy sources and incorporate “next generation” cooling technologies that don’t require drinking water, according to the government.

“This is further evidence that Australia possesses the talent, clean energy potential, trade partnerships, and policies necessary to be a leader in AI,” said Treasurer Jim Chalmers.

“Such partnerships will foster job creation, enhance skills, and promote AI integration throughout our economy.”