The Federal Government has welcomed a $7 billion investment to expand Australia’s AI infrastructure, following the signing of a Memorandum of Understanding (MoU) between OpenAI and Australian data centre operator NEXTDC.
The partnership will see the development of a next-generation data centre at NEXTDC’s S7 site in Eastern Creek, Sydney.
The announcement aligns with the Government’s National AI Plan, released this week, which aims to increase AI adoption, develop local capability, and support workforce training. The S7 facility is expected to generate thousands of direct and indirect jobs during construction and create ongoing roles in technical, engineering, manufacturing and operational fields.
The project will incorporate sustainable design features, including long-term renewable energy power purchase agreements covering wind, solar and battery sources, and cooling systems that do not rely on potable drinking water.
OpenAI has also announced partnerships with Coles, Wesfarmers, the Commonwealth Bank and the NRL to roll out skills programs for workers, small businesses and not-for-profit organisations. A new Founder program will offer additional support to local startups and innovators.
Treasurer Jim Chalmers said the investment is a strong signal of the strength of Australia’s technology sector. “It’s more proof Australia has the talent, clean energy potential, trade partnerships, and policy settings needed to be one of the big winners when it comes to AI,” he said.
Minister for Industry and Innovation and Minister for Science Tim Ayres said clear policy settings under the National AI Plan are helping attract private sector investment. “This kind of partnership is critical to creating good construction, engineering, technical and manufacturing jobs,” he said.
Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton said the investment supports Australia’s long-term competitiveness. “This announcement from OpenAI shows the success of the Albanese Labor Government’s approach,” he said.
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