Australian data-center operator NEXTDC has signed a memorandum of understanding (MoU) with OpenAI to jointly plan, develop and operate a hyperscale AI campus and GPU supercluster at its S7 site in Eastern Creek, western Sydney.
The project makes NEXTDC an infrastructure partner under the OpenAI for Australia program. The AI campus will sit on land the company bought for about A$353 million in 2024 and has planned potential capacity of 550 megawatts.
The S7 campus is being engineered as a “sovereign AI” facility, aligned with Australia’s Security of Critical Infrastructure (SOCI) framework and aimed at supporting sensitive workloads for government, defense, financial services, healthcare, research and other sectors.
According to NEXTDC’s announcement, the S7 campus will use next-generation engineering features including closed-loop, high-density liquid cooling for ultra-high-density GPU clusters. NEXTDC says these cooling systems will not require ongoing potable (drinking) water for operations.
The MoU is nonbinding and set out collaboration on planning and operation rather than a final construction or offtake contract. The first phase of the S7 project, subject to regulatory and other approvals, is expected to be delivered in the second half of calendar 2027.