agency. ChatGPT’s creator OpenAI and Australian data centre operator NextDC have signed a deal to develop a multi-billion dollar artificial intelligence (AI) centre in Sydney.

According to NextDC, which is headquartered in Brisbane, the two companies have signed a memorandum of understanding to build an AI campus and a GPU ‘supercluster’.

Under the agreement, the companies will collaborate to plan, develop and operate cutting-edge AI infrastructure in Western Sydney. The impact of the deal has also been seen in the market. Shares of NextDC are up 4.1 percent.

The Australian government says the $7 billion (about $4.6 billion) project will create thousands of direct and indirect jobs across the construction, technology, engineering and mobilization sectors.

According to the government, the giant center will use new renewable energy sources and build a “next-generation” facility that can be cooled without using drinking water.

Australian Finance Minister Jim Chalmers described the project as a tangible testament to the country’s AI potential, hoping the partnership will create quality jobs, improve skills, and expand AI across the economy. He said Australia’s talent pool, clean energy capabilities, strong business partnerships, and supportive policies make the country one of the “big winners” in the AI space.