OpenAI drops recycled water cooling for 612MW Sydney data center
Despite climate pledges, OpenAI opts for energy-hungry closed-loop cooling in Sydney.
Deep Dive
OpenAI has dropped its original plan to cool its proposed 612-megawatt S7 data center in Sydney using recycled wastewater. Instead, it will use a more energy-intensive closed-loop liquid cooling system—a move that runs counter to government initiatives aimed at reducing the AI sector's environmental impact and demand on natural resources.
Key Points
- OpenAI replaced recycled wastewater cooling with closed-loop liquid cooling for its 612MW Sydney S7 data center, boosting energy demand.
- The revision disregards Australian government efforts to reduce AI's environmental footprint and strain on natural resources.
- Industry estimates suggest the new cooling approach could increase total power consumption by 15-20%, with construction starting in 2026.
Why It Matters
OpenAI's cooling switch signals how AI infrastructure growth is outpacing green commitments, risking higher emissions and grid pressure.