Australia’s NEXTDC Inks MoU With OpenAI to Develop AI Infrastructure in Sydney, Shares Jump

Wedoany.com Report-Dec.5, Australian data centre operator NEXTDC Ltd announced on Friday that it has signed a memorandum of understanding with OpenAI, the developer of ChatGPT, to jointly develop a large-scale AI campus and GPU supercluster at its S7 facility in Eastern Creek, Sydney.

The news drove NEXTDC shares up as much as 10.9% to A$14.90, marking the highest level since 13 November and making it the strongest performer on the benchmark index that day.

The S7 site, acquired last year for approximately A$353 million ($233 million), offers potential capacity of up to 550 megawatts. The collaboration forms part of OpenAI’s Australia programme, which focuses on expanding artificial intelligence infrastructure and adoption in the country.

Demand for high-performance computing resources continues to surge globally, prompting significant investment in data centre capacity. The agreement aligns with Sydney's recently published strategy to promote AI integration across the economy.

NEXTDC recently increased its fiscal 2026 capital expenditure guidance by A$400 million to a range of A$2.2–2.4 billion, reflecting accelerated development to meet growing customer commitments.

"This is a significant step for NEXTDC," said Michael McCarthy, CEO for Australia and New Zealand at trading platform Moomoo. He noted that securing OpenAI as an anchor tenant provides revenue certainty and supports national objectives for AI advancement and productivity growth.

"The guaranteed revenue stream will likely see investors queueing to get involved."

McCarthy also highlighted potential longer-term considerations, including copyright questions related to training large language models and electricity costs.

"The deal fits nicely with current market narratives around AI, and NEXTDC shares could spike today, but the glee with which investors may greet this deal could sour over time as reality bites," he added.

The non-binding agreement marks an important milestone for both companies as they work toward detailed commercial and technical arrangements for the Sydney AI campus.