This article first appeared on GuruFocus .
Nvidia ( NASDAQ:NVDA ) is working with Australian cloud partners on up to 2 gigawatts of AI computing capacity by 2027, expanding the chipmaker's ecosystem beyond selling processors into designing AI factories.
The program involves sites designed to host several generations of Nvidia DSX infrastructure. Partners include IREN ( NASDAQ:IREN ), Sharon AI, Firmus, ResetData, Megaport, CDC, NEXTDC and AirTrunk.
DSX combines hardware, networking and software compatible with Nvidia's CUDA ecosystem. Nvidia argues that software improvements can make the infrastructure more productive and durable, allowing operators to treat compute capacity as an investable, revenue-generating asset.
Nvidia Builds an Australian AI Factory Network
IREN plans to apply the DSX reference architecture across its development portfolio, including its 800-megawatt Bundey campus in South Australia. The vertically integrated approach gives IREN control over power, construction and operations, potentially helping it bring capacity online at scale.
Sharon AI plans to deploy up to 68,000 Nvidia GPUs, while other partners are preparing data centers, powered shells and connectivity for accelerated computing. The network will support multiple Nvidia chip generations rather than a single product cycle.
Demand will come from companies building models and applications locally. Atlassian plans to use Nvidia's Nemotron open models, datasets and tools to customize multimodal applications and enhance Rovo, its workplace AI platform.
For Nvidia investors, the announcement demonstrates how the company can influence infrastructure decisions long before chips are installed. Standardizing facilities around DSX and CUDA could encourage customers to remain inside Nvidia's ecosystem when they upgrade equipment or expand capacity.
Execution still matters. Two gigawatts represents an upper target, not completed capacity. Partners must secure power, financing, equipment and customers while meeting construction deadlines. If the projects arrive on schedule and maintain strong utilization, Australia could become both a domestic AI hub and another durable demand channel for Nvidia.
