OpenAI drops recycled-water cooling plan for Sydney data centre, opts for liquid system

OpenAI’s planned S7 data centre in Sydney, designed to deliver 612 megawatts and rank among the world’s largest AI facilities, will no longer be cooled with recycled water. After the developer, NEXTDC, could not secure the necessary approvals for a wastewater pipeline, the company has shifted to a closed-loop liquid cooling approach that circulates coolant across processors and relies on fan arrays for heat removal. The original recycled-water scheme, outlined in planning documents filed in April, aimed to cut reliance on potable water and lower the power usage effectiveness metric.

Craig Scroggie, NEXTDC’s chief executive, said the lack of existing infrastructure in Western Sydney made the original plan unfeasible. Although the revised system eliminates the need for drinking water, experts note it will increase electricity consumption, adding pressure to Sydney’s already stretched grid. Despite the technical change, the S7 project is projected to create thousands of jobs during construction and for ongoing operations in technical, manufacturing, engineering and operational roles.