OpenAI, NextDC Plan to Build Large-Scale Sydney Data Center

(Bloomberg) — Australian data center group NextDC Ltd. and ChatGPT-developer OpenAI have agreed to partner on the development of a large-scale data center in Sydney.

The project is part of a broader sovereign AI infrastructure partnership between the two firms, formalized in a memorandum of understanding, according to a statement from Sydney-listed NextDC on Friday. NextDC shares jumped as much as 11% in early Sydney trading.

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The companies will 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 Sydney’s Eastern Creek, about 45 kilometers (28 miles) west of the city center.

A spokesperson for NextDC declined to provide further details.

The data center is worth A$7 billion ($4.6 billion) and will be used for OpenAI clients including Commonwealth Bank, Wesfarmers, Canva and Virgin Australia, the Australian Financial Review reported.

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