Nvidia Plans Major Expansion of Data Centre Capacity in Australia to Meet AI Demand Up to 2GW Buildout by 2027

Nvidia has announced plans to expand Australia's data centre computing capacity to up to 2 gigawatts by 2027 through partnerships with eight local firms, more than doubling the nation's current load of 1.6GW.

Nvidia has unveiled its most significant infrastructure commitment in Australia to date, announcing a partnership with eight local cloud and data centre operators to build up to 2 gigawatts of AI-related computing capacity by 2027. The buildout would more than double Australia's current computing capacity of 1.6GW, according to research from analysts DC Byte cited by lobby group Data Centres Australia.

The announcement was made in Melbourne on September 9, 2026, and positions Australia as a key test case for Nvidia's strategy of expanding AI compute beyond the dominant US hyperscalers. The chipmaker is working with Firmus, Sharon AI, IREN, Megaport, ResetData, CDC, NEXTDC and AirTrunk, with the data centres to be built using Nvidia's "DSX platform."

"AI factories turn energy into intelligence this is the core resource of the AI economy," said Raj Mirpuri, Nvidia's Vice President of Global AI Cloud and Infrastructure Ecosystem, describing DSX as "a new investable asset class" compatible with the CUDA software ecosystem.

The Partners and Their Commitments

Each partner is bringing physical scale to the buildout. Sharon AI is deploying up to 68,000 Nvidia GPUs connected with Quantum InfiniBand and Spectrum-X Ethernet networking. CDC operates more than 550MW of capacity across Australia and New Zealand, with a further 800MW under construction, all using 100% renewable electricity and zero-water direct liquid-to-chip cooling certified for Nvidia accelerated computing. IREN is applying the DSX reference architecture across its development portfolio, including its 800MW Bundey campus in South Australia. NEXTDC and AirTrunk are building liquid-cooled, high-density AI factory shells, while Megaport is expanding access to Nvidia accelerated computing through its subsidiary Latitude.sh.

Firmus is expanding its Project Southgate initiative, developing Nvidia-powered AI factories to support hyperscale and AI-native demand across Australia and Asia-Pacific. "Project Southgate represents a tangible commitment to building Australia's AI future," said Oliver Curtis, co-founder and co-CEO of Firmus.

Regulatory and Environmental Scrutiny

The expansion comes as Australia positions itself as a global hub for data centre investment, but faces calls for tougher regulation over concerns about environmental impact and heavy energy and water consumption. The buildout's execution risk will depend on power availability and engineering timelines significant variables in a country where grid connection queues are increasingly lengthy.

Nvidia's Broader Strategy

The Australia announcement follows a series of major infrastructure commitments by Nvidia globally, including a 10GW AI campus in Ohio with OpenAI and SoftBank, and a 1GW data centre lease in Texas. The company is increasingly moving beyond chip supply to become an organiser of AI factory infrastructure, securing land, power, and shell capacity to lock in long-term demand for its GPUs.

For investors, the Australia buildout extends Nvidia's data centre footprint beyond the few US hyperscalers that drive its growth, adding a regional revenue stream tied to power and land rather than just chip shipments.

Here is the question this expansion raises. Nvidia is partnering with eight Australian firms to build up to 2GW of AI data centre capacity, more than doubling the nation's current computing load. When a single chipmaker orchestrates a buildout of this scale in a country already facing energy and water constraints, does this represent a strategic investment in Australia's AI future, or an infrastructure challenge that regulators and communities are not prepared to manage?

FAQ:

Q: What is Nvidia's data centre expansion plan in Australia?
A: Nvidia plans to partner with eight Australian cloud and data centre firms to build up to 2 gigawatts of AI-related computing capacity by 2027, more than doubling Australia's current computing load of 1.6GW.

Q: Which Australian companies is Nvidia partnering with?
A: Nvidia is working with Firmus, Sharon AI, IREN, Megaport, ResetData, CDC, NEXTDC and AirTrunk.

Q: What is Nvidia's DSX platform?
A: DSX is Nvidia's full-stack AI factory platform spanning facilities infrastructure, computing, networking, software and reference designs, compatible with the CUDA ecosystem and upgradable over the life of the infrastructure.

Q: How does the Australia expansion compare to Nvidia's other global projects?
A: The Australia buildout follows Nvidia's 10GW AI campus in Ohio with OpenAI and SoftBank, and a 1GW data centre lease in Texas.

Q: What concerns exist about the data centre expansion in Australia?
A: The expansion faces calls for tougher regulation over environmental impact, heavy energy and water consumption, and potential grid connection challenges.