ChatGPT creator OpenAI has entered into a landmark partnership with Australian data centre operator NextDC to develop a multi-billion-dollar artificial intelligence campus and computing hub in Sydney. The companies signed a memorandum of understanding to collaborate on the planning, development, and operation of the advanced AI infrastructure.
The project, announced by Brisbane-headquartered NextDC, involves creating a dedicated AI campus and a “supercluster” of graphics processing units (GPUs) in western Sydney. The announcement buoyed investor confidence, with NextDC shares rising 4.1% in early afternoon trading.
The Australian government highlighted the project’s significant economic potential, estimating its value at approximately A$7 billion (US$4.6 billion). Officials stated that the development would generate thousands of direct and indirect jobs during its construction phase, as well as ongoing technical, manufacturing, engineering, and operational roles.
Australia's NEXTDC signs deal with OpenAI to build hyperscale AI campus, GPU supercluster https://t.co/4m6pU4aClx
— Reuters Asia (@ReutersAsia) December 4, 2025Treasurer Jim Chalmers praised the initiative, stating, “It’s more proof Australia has the talent, clean energy potential, trade partnerships, and policy settings needed to be one of the big winners when it comes to AI.” He added that such partnerships would help create quality jobs, boost skills, and accelerate AI adoption across the Australian economy.
A key aspect of the project is its commitment to sustainable infrastructure. According to the government release, the AI campus will utilise long-term power purchase agreements to source new renewable energy. It will also incorporate “next-generation” cooling features designed to operate without consuming drinking water, addressing critical environmental and resource concerns.
