OpenAI and NextDC to Construct $4.6 Billion Data Center in Sydney

Written by Emily J. Thompson, Senior Investment Analyst

Source: SeekingAlpha

Updated: Dec 05 2025

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Source: SeekingAlpha

OpenAI and NextDC Partnership: OpenAI and NextDC have signed a Memorandum of Understanding to develop a A$7 billion ($4.6 billion) hyperscale AI campus and GPU supercluster in Sydney's Eastern Creek precinct.
Infrastructure Details: The facility will have a potential capacity of up to 550 megawatts and marks OpenAI's first significant AI infrastructure investment in Australia, with the first phase expected to be completed by H2 2027, pending approvals.
Market Reaction: Following the announcement, NextDC's stock price increased by approximately 10%, raising its market value to over A$9 billion.
Future Developments: The collaboration will focus on the planning, development, and operation of the AI infrastructure in western Sydney, indicating a significant step in AI capabilities in the region.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.