OpenAI will anchor a new $7 billion hyperscale AI data centre campus to be built by NextDC in Eastern Creek, with the two organisations signing a Memorandum of Understanding to support Australia’s accelerating demand for sovereign AI infrastructure.

The agreement positions OpenAI as the first major customer for the site — a commitment that Information Age understands provides the scale required to make the project commercially viable. The facility will still be available to additional enterprise and government customers.

The campus, located on NextDC’s S7 site acquired in 2024, will integrate an advanced AI precinct and a large‑scale GPU supercluster capable of supporting high‑performance machine learning workloads. With an expected capacity of around 550 megawatts, the facility would surpass CDC’s recently approved 504MW site, making it potentially the most powerful data centre in the southern hemisphere.

NextDC said the project will use liquid‑cooling technologies that avoid the need for ongoing potable water use and will be powered through long‑term renewable energy agreements.

Sovereign AI Capacity Coming Online in 2027

Pending approvals, the first phase of S7 will go live in the second half of 2027, forming what NextDC describes as “one of the most advanced sovereign AI campuses in the Asia‑Pacific region”.

“It is engineered as a sovereign AI facility with security, resilience and operational standards aligned to Australia’s SOCI framework,” the company said.

The initiative forms a core part of the OpenAI for Australia program — the company’s first dedicated national program in the Asia‑Pacific.

Government Welcomes a ‘Terrific Outcome’

Federal Treasurer Jim Chalmers said the investment signals confidence in Australia’s technology environment.

The project “is expected to deliver thousands of direct and indirect jobs over the course of its construction, as well as ongoing technical, manufacturing, engineering, and operational roles”, the government said.

"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 it AI,” Chalmers added.

"Partnerships like these will help create good jobs, boost skills, and spread AI adoption across our economy.”

Minister for Industry, Innovation and Science Tim Ayres said Australia’s National AI Plan provides “stable policy settings and clarity of this government’s approach”, which he described as essential for attracting private capital at scale.

OpenAI Expands Local Workforce, Training and Startup Programs

OpenAI has been increasing its engagement with government, industry and regulators, including securing its first Australian government contracts in 2025.

CEO Sam Altman said Australia is well‑placed to build a strong AI economy.

“Australia’s AI industry had ‘deep technical talent, strong institutions and a clear ambition to use new technology to lift productivity’,” he said.

"Through OpenAI for Australia, we are focused on accelerating the infrastructure, workforce skills and local ecosystem needed to turn that opportunity into long-term economic growth.”

OpenAI also announced new national skills and startup initiatives:

• Partnerships with Commonwealth Bank, Coles and Wesfarmers to deliver AI training from 2026
• Co‑developed AI learning resources and masterclasses for CBA’s one million small business customers
• Tailored AI programs for Coles and Wesfarmers employees via the OpenAI Academy
• A new startup program with venture capital firms Blackbird, Square Peg and AirTree

Participating startups will access up to US$15,000 in API credits, engineering mentorship and workshops covering scaling, compliance and safety.

These programs reflect increasing competition among global technology companies to embed their AI tools across Australian enterprise, education and government.

Economic modelling commissioned by OpenAI and industry partners, including ACS, estimates that broad AI adoption could increase Australia’s GDP by up to $142 billion annually by 2030.

Source: Information Age (ACS)
 

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