Global Data Center Arms Race for AI Compute
The surge in investment in AI data centers signals a strategic pivot towards hyper-scale infrastructure as demand for AI workloads skyrockets. This trend highlights the urgency for countries like India and Australia to position themselves as key players in the global AI landscape, fostering local economies while attracting major tech firms. However, the potential for overbuilding raises concerns about sustainability and the long-term viability of these investments.
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Australia’s NEXTDC signs deal with OpenAI to build hyperscale AI campus and GPU supercluster in Sydney
Australian data center operator NEXTDC has signed a deal with OpenAI to co-develop and operate a hyperscale AI campus and GPU supercluster at its planned S7 site in Eastern Creek, Sydney. The project will make OpenAI an anchor tenant in what is expected to be the largest data center in the Southern Hemisphere, underscoring the escalating global race to secure AI compute capacity and positioning Australia as a significant regional hub for advanced AI workloads. ([reuters.com](https://www.reuters.com/world/asia-pacific/australias-nextdc-signs-deal-with-openai-build-hyperscale-ai-campus-gpu-2025-12-04/))
Indian data center operator Sify Infinit Spaces bets on AI boom but wary of bubble
Sify Infinit Spaces, which is set to become India’s first listed pure-play data center operator, says generative AI workloads are a major driver of demand but warns of potential overbuilding if the hype outpaces sustainable usage. The company, backed by Kotak Private Equity and spun out of early Indian ISP Sify Technologies, operates 14 data centers with 11 more under development and plans a roughly 37 billion rupee IPO, while still relying heavily on hyperscale clients such as Alphabet, Amazon and Microsoft for capacity growth.
Adani eyes up to $5B investment in Google’s India AI data center project
Adani Group said it could invest as much as $5 billion via Adani Connex in Google’s planned AI data center campus in Visakhapatnam, Andhra Pradesh. The project—part of Google’s previously announced $15 billion India AI buildout—would start at 1GW of power, reflecting the surge in compute needs for AI workloads and India’s push to scale domestic data infrastructure.