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

OpenAI partnered with Australian data center operator NextDC Ltd. to build a A$7 billion ($4.6 billion) large-scale computing cluster in Sydney, accelerating its expansion in the Asia-Pacific region.

The new data center is part of a broader AI infrastructure partnership between the two companies, NextDC said Friday, sending its stock soaring as much as 11%. The project, slated to get up and running by the second half of 2027, comes as OpenAI is launching its first office in Australia and the country pushes forward with its sovereign artificial intelligence efforts.