
OpenAI’s planned 612-megawatt S7 data centre in Sydney will no longer use recycled water to cool its servers. Developer NEXTDC abandoned plans for a dedicated wastewater pipeline after failing to secure the…
OpenAI’s planned 612-megawatt S7 data centre in Sydney will no longer use recycled water to cool its servers. Developer NEXTDC abandoned plans for a dedicated wastewater pipeline after failing to secure the required planning permits, Reuters reported through The Times of India.
The facility will instead use a closed-loop liquid cooling system that circulates coolant over processing chips and releases heat through fans. The system will not use drinking water, but analysts expect it to consume more electricity. The change comes as Sydney’s grid operator warns that data centre demand is putting pressure on transmission capacity. OpenAI and NEXTDC signed an agreement in December 2025 for OpenAI to use part of the centre’s capacity.
Claims that the project has become either a green breakthrough or an environmental failure are both premature. Recycled water was blocked by missing infrastructure and permits, while the replacement avoids potable water but may increase electricity use. The real test is not the marketing around either system. It is whether NEXTDC can show the centre’s measured power use, water use and effect on Sydney’s grid once operations begin.
Source: timesofindia.indiatimes.com
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