Nvidia partners on $2.9 billion AI data center project in Australia

Nvidia Corp. (NVDA, Financials) is getting more AI infrastructure in Australia through a new agreement. The corporation is cooperating with Melbourne-based Firmus Technologies on a $2.9 billion plan to develop data centers powered by renewable energy all throughout the country.

Project Southgate is the name of the effort, which comprises sites that are already being built in Melbourne and Tasmania. Firmus said that the first facilities will require roughly 150 megawatts of power and run on Nvidia's newest GB300 chips. They should be up and running by April.

The agreement shows how Nvidia's role in the AI boom is changing all the time. The company is becoming more and more connected to the infrastructure that makes AI training and deployment possible, in addition to making chips. The acquisition is also part of Australia's larger effort to bring in more powerful computer investments while keeping energy use low.

The first A$4.5 billion phase of Project Southgate will focus on the Melbourne site, which is intended to be the center of future growth. Market experts think the move could help Nvidia's position in the Asia-Pacific region, where demand for AI computing power is growing quickly.