💼 OpenAI Abandons Water Recycling Plan for Australian Data Center

Developers of the massive 612 MW S7 data center in Australia, planned by OpenAI, have abandoned the use of recycled wastewater to cool servers. The reason cited was the difficulty in obtaining permits to build the pipeline required to deliver the water. Instead, the company NEXTDC is switching to more energy-intensive cooling methods, which could increase the load on Sydney's already strained power grid.

🌍 The problem of scaling AI infrastructure is not just about chip availability, but also about resource availability (water and electricity). Abandoning the use of recycled water forces operators to choose less efficient methods, which lowers the PUE (Power Usage Effectiveness) and increases the carbon footprint.

👤 Even industry leaders like OpenAI are facing physical and bureaucratic constraints. The development of AI is directly dependent on the local energy and water sustainability of regions.

Source 1: https://www.reuters.com/business/energy/openais-australian-data-centre-drops-water-recycling-plan-testing-drive-curb-2026-07-22/