Sydney, Australia – US-based artificial intelligence company OpenAI and Australian data center operator NextDC announced on Friday a multi-billion dollar agreement. The agreement aims to develop a dedicated AI center in Sydney.
Brisbane-based NextDC stated that the agreement covers the construction and operation of a dedicated, next-generation data center. A massive array of high-performance graphics processing units (GPUs) will also be installed.
NextDC shares rose by more than 4% following the announcement of this strategic partnership.
A $7 billion project and a leading position
The development and operation of the infrastructure for this project is expected to be concentrated in the western part of Sydney, according to a joint announcement from the two companies.
The Australian government indicated that the project will cost approximately AU$7 billion (around €3.9 billion). It is expected to create thousands of direct and indirect jobs during the construction phase, as well as permanent positions later on.
The Australian government confirmed that the project is moving towards using renewable energy sources, in addition to “next-generation” cooling systems that do not require potable water.
Altman: Australia is in a leadership position
OpenAI CEO Sam Altman praised the move, asserting that Australia is well-positioned to lead the sector globally.
Altman said: “Australia is well-positioned to take on a leading role in global artificial intelligence thanks to its high-level technical talent, strong institutions and clear ambition.”
In the same vein, Australian Treasurer Jim Chalmers affirmed that his country possesses all the necessary elements to become a “major winner in the field of artificial intelligence.” This is thanks to its talent pool, clean energy potential, and effective trade partnerships.
