Australia seals $4.6 billion deal for new AI hub

The new hub will house a major supercluster of processors for advanced AI work.
OpenAI and NextDC join forces on a multibillion-dollar AI campus in Sydney.

OpenAI has partnered with Australian data centre operator NextDC to build a major AI campus in western Sydney. The companies signed an agreement covering development, planning and long-term operation of the vast site.

NextDC said the project will include a supercluster of graphics processors to support advanced AI workloads. Both firms intend to create infrastructure capable of meeting rapid global demand for high-performance computing.

Australia estimates the development at A$7 billion and forecasts thousands of jobs during construction and ongoing roles across engineering and operations. Officials say the initiative aligns with national efforts to strengthen technological capability.

Plans feature renewable energy procurement and cooling systems that avoid drinking water use, addressing sustainability concerns. Treasurer Jim Chalmers said the project reflects growing confidence in Australia’s talent, clean energy capacity and emerging AI economy.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!