OpenAI to build $4.6B data center in Sydney
What's the story
OpenAI has announced a partnership with Australian data center operator, NextDC Ltd., to build a massive A$7 billion ($4.6 billion) computing cluster in Sydney. The project is part of a larger AI infrastructure collaboration between the two companies and comes as OpenAI opens its first office in Australia. The move also aligns with Australia's sovereign artificial intelligence initiatives.
Project details
OpenAI's Sydney data center to boost AI infrastructure
The new data center will be part of a broader AI infrastructure partnership between OpenAI and NextDC. The announcement has already sent NextDC's stock soaring. Jason Kwon, Chief Strategy Officer at OpenAI, said the decision to invest in Australia was driven by "the momentum that Australia has when it comes to AI." He added the center would feature "some of the most sophisticated architecture and infrastructure for AI models in all the APAC region."
Information
OpenAI is expanding its global footprint
OpenAI CEO Sam Altman is expanding the company's global footprint, courting businesses and governments worldwide as competition with Google, Meta, and other rivals intensifies. Australia is emerging as a regional data center hub, drawing fresh investment as companies and authorities accelerate adoption of AI services.