NextDC confirms OpenAI partnership on $7.6b Sydney AI data centre build
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The news: NextDC has confirmed a partnership with OpenAI on the planning, development and operation of a “hyperscale AI campus and large-scale GPU supercluster” at the proposed S7 development site in Eastern Creek, Sydney.
The numbers: NextDC previously flagged that development of its S4 and S7 data centres would require upwards of $15 billion. The cost of building the S7 facility is expected to be in the ballpark of $7.6 billion.
Subject to further planning work, S7 could have a total power capacity of 650 megawatts.
The context: Under the memorandum of understanding, OpenAI intends to be the initial offtaker from NextDC’s S7 site with the option to scale through its OpenAI for Countries program.
NextDC has been looking for third-party capital to help fund the project, with OpenAI as an anchor tenant likely to de-risk and facilitate that process.
This is aimed at driving AI infrastructure development to support "sensitive and mission-critical workloads across government, enterprise, research and national infrastructure”, according to OpenAI.
What they said: “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.”
The sources: OpenAI statement, ASX
