Nexspace breaks ground on expanded Graz data centre

German company Nexspace has begun expanding its existing data centre in Graz, doubling its IT capacity, ORF reported on Wednesday. The project is described by Graz Mayor Elke Kahr as an investment in the city’s future that could create incentives for small and medium-sized businesses.

Nexspace, which already operates a data centre in Graz-Puntigam, held the groundbreaking ceremony on Wednesday at its site on Alte Poststraße. The three-storey extension will provide space for 240 additional racks, which house cooled computer equipment. The total usable floor area will increase to 1,400 square metres.

Green energy and waste heat

Company chief executive Christian Zipp said demand was growing for infrastructure and artificial intelligence applications. The facility will provide infrastructure and colocation services for medium-sized customers, as well as the standards needed to integrate artificial intelligence-related applications.

The data centre is intended to meet high sustainability standards. It will run exclusively on green electricity, while heat generated by the computers will be used for heating. Greenery on the building will also help with cooling.

Kahr, a member of the Communist Party of Austria, said the expansion would make Graz more attractive to medium-sized businesses. She called it an important boost that differed from large data centres overseas.

The expanded data centre is scheduled to become operational in August 2027.