NextDC’s S7 Sydney Data Center to Deliver 612MW, with OpenAI Stargate as Planned Anchor Tenant
July 2, 2026
NextDC’s S7 Sydney Data Center to Deliver 612MW, with OpenAI Stargate as Planned Anchor Tenant
NextDC has unveiled plans for its massive S7 data center in Sydney, Australia, a facility that will offer up to 612 megawatts (MW) of total capacity. The project marks one of the largest single-site data center developments in the Asia-Pacific region and is expected to serve as a key infrastructure hub for the rapidly expanding artificial intelligence sector.
The S7 facility is strategically positioned to accommodate the power and cooling demands of next-generation AI workloads, with OpenAI’s Stargate project reportedly lined up as a planned customer. The Stargate initiative, which focuses on building large-scale compute clusters to support advanced AI models, would require substantial energy density and space, making the S7 site a natural fit. NextDC has not confirmed the specific allocation of capacity to OpenAI, but industry sources indicate that the partnership could anchor a significant portion of the 612MW footprint.
This development underscores the escalating demand for hyperscale data center capacity driven by AI training and inference workloads. In Australia, the data center market has seen a surge in investment, with operators racing to secure land, power, and cooling resources. The S7 facility is expected to leverage advanced liquid cooling and high-density rack configurations to support the intense computational requirements of Stargate and other AI tenants.
The announcement also reflects broader industry trends: data center operators are increasingly building mega-campuses with capacities exceeding 500MW to meet the needs of cloud hyperscalers and AI-focused firms. NextDC’s S7 project positions the company as a dominant player in the Australian market, capable of competing with global rivals such as Equinix and Digital Realty. Local governments have supported such developments through streamlined permitting and grid interconnection incentives, recognizing the economic and technological benefits of hosting world-class AI infrastructure.
Source: datacenterdynamics
