OpenAI and NEXTDC Power Sovereign AI in Sydney, Australia

Melissa Palmer

December 7, 2025

OpenAI is partnering with Australian data center operator NEXTDC to build a hyperscale AI campus at the S7 site in Sydney, anchored by a large GPU supercluster.

The project is framed as sovereign AI infrastructure, giving Australia domestically controlled, high-performance compute for sensitive government, enterprise, and critical infrastructure workloads instead of relying solely on overseas cloud.

Design plans lean into operational realities: closed-loop liquid cooling, zero drinking water use, and renewable integration, signaling a push to square massive GPU power and thermal loads with local sustainability and regulatory demands.

OpenAI will be the initial offtaker under its “OpenAI for Countries” model, effectively pre-booking substantial GPU capacity and helping de-risk the build for NEXTDC over a multi-year construction timeline.

The move aligns tightly with Australia’s National AI Plan, treating compute as a strategic asset and pairing infra build-out with workforce training through OpenAI Academy and large employers like CommBank, Coles, and Wesfarmers.

The program also seeds the local startup ecosystem with API credits and technical support, betting that proximity to sovereign GPU capacity plus skills and capital will keep more AI value creation inside Australia.

This is a useful link if you care how national AI programs are starting to bundle GPU supply, data center design, and domestic policy into a single infrastructure play.

Source: OpenAI Launches Australia Program with NEXTDC to Build Sovereign AI Infrastructure | ETIH EdTech — EdTech Innovation Hub

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