NVIDIA said on Sept. 9 that it is partnering with eight Australian infrastructure providers to develop an AI factory network, with capacity expected to reach up to two gigawatts by 2027.
The expansion will include Firmus, Sharon AI, IREN, Megaport, ResetData, CDC, NEXTDC and AirTrunk. NVIDIA said the partners will develop land, power and powered-shell capacity designed to support multiple generations of its DSX infrastructure.
NVIDIA will supply accelerated computing systems, networking hardware, software and technical assistance, while the participating companies will run the facilities. As a result, the two-gigawatt figure refers to a combined capacity goal rather than a single data center owned by NVIDIA.
The proposed expansion would surpass Australia’s current data center computing capacity, which stands at roughly 1.6 gigawatts. The figures come from Data Centres Australia and market researcher DC Byte, as cited by Reuters.
Eight Partners to Share Infrastructure Responsibilities
Sharon AI intends to install as many as 68,000 NVIDIA GPUs, linked through NVIDIA Quantum InfiniBand and Spectrum-X Ethernet networking. The company said the infrastructure will support Australian startups, businesses, government bodies and research institutions seeking computing resources hosted locally.
IREN will integrate NVIDIA’s DSX reference architecture with its expertise in power infrastructure, land, data centers and GPU operations. Its role includes the planned 800-megawatt Bundey campus in South Australia. The company has traditionally operated Bitcoin mining facilities but has increasingly shifted toward AI cloud services and high-performance computing.
The transition highlights the growing connection between cryptocurrency mining and AI infrastructure. Both sectors depend on substantial power supplies, cooling systems and specialized computing facilities. In related coverage, explored why AI chips are increasingly being likened to scarce digital assets as demand for computing capacity continues to rise.
CDC said it currently operates more than 550 megawatts across Australia and New Zealand, while another 800 megawatts is being developed. The company also says its facilities rely on renewable power and zero-water cooling technology. However, these environmental claims come from the company and have not been independently verified for every proposed location.
NVIDIA DSX Links AI Facilities With Advanced Software
NVIDIA presents DSX as a complete, full-stack AI factory platform spanning facility planning, computing, networking, software and reference architecture. Compatible with CUDA, the system is built to accommodate future generations of NVIDIA hardware without forcing operators to redesign each layer of their infrastructure.
The company said the expanded capacity would provide Australian organizations with broader access to NVIDIA’s Nemotron open models. Healthcare technology firm Heidi is using Nemotron tools for clinical applications, while Atlassian has adopted NVIDIA technology for semantic search and other functions across its Rovo AI platform.
However, NVIDIA has not revealed the projected cost of the Australian expansion, specific investment commitments or how much of the planned capacity already has financing, regulatory approval or grid access. The two-gigawatt target should therefore be viewed as a future expansion plan rather than infrastructure that has already been completed.
Power Availability Will Decide Whether the Target Is Met
The proposal’s size puts greater attention on power supply, grid access and cooling demands. Data centers require a constant flow of electricity, while high-density GPU clusters often need more sophisticated cooling systems than traditional computing facilities.
NVIDIA said the extra capacity could help enable new power-generation projects, but it did not name specific generation facilities or electricity agreements. Australian authorities and infrastructure providers will need to review grid connections, construction permits and environmental requirements for each individual project.
NEXTDC separately revealed plans to secure A$1.1 billion through convertible notes to fund the expansion of its AI infrastructure portfolio, Reuters reported. The capital raising covers projects beyond the NVIDIA partnership and should not be considered financing dedicated only to DSX facilities.
The next key developments will include site approvals, power contracts, construction progress and GPU delivery timelines. NVIDIA and its partners have not yet released a joint schedule detailing how much of the planned capacity is expected to become operational at each stage before 2027.
NVIDIA also warned that its infrastructure forecasts will depend on demand, partner execution, regulatory conditions and technology availability. Investors can track these risks through the company’s SEC filings, along with upcoming updates from its eight Australian partners.
