• Australia has just unveiled its National AI Plan
• Now OpenAI has teamed up with NextDC to build a massive AI datacentre in Sydney
• The development is being pitched as sovereign AI infrastructure

Only days after the Australian government unveiled its National AI Plan, Chat GPT developer OpenAI announced a AUS$7bn (US$4.6bn) infrastructure partnership with Australian datacentre operator NextDC to “collaborate on the planning, development and operation of a next-generation hyperscale AI campus and large-scale GPU supercluster at NextDC’s S7 site in Eastern Creek, Sydney” with the aim of delivering sovereign AI services to Australian users.

NextDC announced it has “agreed a memorandum of understanding (MoU) with OpenAI, enabling Australia to become a regional infrastructure partner under the Open AI for Countries programme,” and that the S7 campus “will provide secure, sovereign infrastructure, supporting sensitive and mission-critical workloads across enterprise, financial services, government, defence, education, healthcare, research and the broader technology ecosystem,” with the facility expected to come online in late 2027. 

OpenAI is “already working with leading enterprises across Australia, including Commonwealth Bank, Canva, Atlassian, Virgin Australia, Coles, the University of New South Wales (UNSW) and LaTrobe University. It recognises Australia’s strengths in datacentre infrastructure, and status as a Five Eyes nation,” added NextDC, referring to the security services relationship between Australia, Canada, New Zealand, the UK and the US.

The relationship marked the launch of OpenAI for Australia, “a nationwide initiative bringing OpenAI together with local partners to unlock the full economic and societal benefits of artificial intelligence across the country. AI is a foundational technology with the potential to support growth, lift productivity and fuel innovation. To help realise this vision, OpenAI will work with local partners through OpenAI for Australia – the first OpenAI for Countries programme in the Asia Pacific region – to support sovereign AI infrastructure, upskill Australians and accelerate Australia’s thriving local AI ecosystem.” NextDC, which operates datacentres in 10 locations across Australia, is the first local partner. 

OpenAI’s CEO Sam Altman stated: “Australia is well placed to be a global leader in AI, with deep technical talent, strong institutions and a clear ambition to use new technology to lift productivity. 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.”

Australia’s industry and innovation minister, Tim Ayres, noted that the development represents a “AUS$7bn boost in Australia’s AI ecosystem, which will help develop local AI infrastructure, spread its benefits and increase the adoption of AI. A key pillar of the government’s National AI Plan announced this week is to capture the economic opportunity – and to do so in a way that spreads the benefits through widespread AI adoption, supporting and training Australian workers, and improving public services.”

Australia already has about 280 datacentre facilities operated by multiple companies, according to Data Center Map: Major players include AirTrunk, Equinix, Macquarie Technology Group and Telstra, as well as the major US hyperscalers, Amazon Web Services (AWS), Google Cloud and Microsoft Azure.  

- Ray Le Maistre, Editorial Director, TelecomTV