Artificial intelligence is now woven into the daily operations of modern business. AI-powered agents, automated workflows, intelligent assistants, and generative platforms are becoming essential tools for productivity and growth. But while AI feels like an invisible layer of software, the truth is far more grounded in physical reality. AI doesn’t simply exist “in the cloud.” It lives inside data centres — real facilities filled with hardware, power systems, cooling infrastructure, fibre networks, and specialised environments designed to handle the extraordinary demands of modern AI workloads.
In Australia, the leading environment where AI lives is NEXTDC.
NEXTDC does not build the GPU clusters or the AI hardware themselves. Instead, they provide the highly engineered environment required for AI systems to operate safely, efficiently, and continuously. They house, power, cool, secure, and connect the infrastructure built by enterprises, MSPs, hyperscalers, and AI service providers. Their world-class facilities are designed for the new era of high-density artificial intelligence — an era defined by intense heat, unpredictable power loads, and enormous data flow.
This is why vCloud Group AI partners with NEXTDC. Our automation systems depend on reliable, high-performance environments, and NEXTDC’s facilities form the physical foundation that allows our AI solutions to run 24/7 without interruption. Their engineering makes it possible for us to deliver on our mission: giving people more time and enabling businesses to operate more efficiently.
To understand why this partnership matters, we first need to explore what actually happens when AI executes.
What Happens When AI Executes a Task
When a user interacts with an AI system — whether through an agent, a prompt, or a workflow — the process behind the scenes is called inference. Inference is when the AI model takes the input, runs it through its billions of parameters, and generates an output. Although this appears instant, the computation is extremely intense.
A helpful analogy is to imagine asking a highly trained expert a question. Their brain lights up across thousands of pathways to form an answer. AI executes in a similar way, except instead of neurons, it uses GPUs, memory channels, and parallel processing units. Even a simple response requires an enormous amount of computation, power, and heat dissipation.
This is why AI systems require so much more physical infrastructure than
traditional workloads.
The hardware is running at full intensity, consuming large amounts of electricity, generating extreme heat, and demanding ultra-fast communication between components. For AI to work reliably, it must live in a facility designed for this kind of sustained, high-density load — which is precisely what NEXTDC provides.
The Ecosystem of AI Execution: Who Does What
AI execution is not the responsibility of one organisation or one system. It is an ecosystem made up of several layers, each playing a critical role in making AI possible.
At the base of this ecosystem is the data centre environment, and in Australia, NEXTDC stands as the premier provider. They supply the physical foundation for AI: the building, the racks, the redundant power feeds, the advanced cooling systems, the neutral carrier access, and the physical security required for uninterrupted operation. Their facilities are engineered specifically to support high-density, high-performance computing — making them the ideal environment where AI lives.
Inside these facilities, MSPs, hyperscalers, and enterprise operators install the actual compute layer. This includes GPU clusters, AI accelerators, high-speed storage arrays, low-latency switching fabrics, and orchestration platforms. Many organisations also host their workflow and automation servers inside NEXTDC, allowing platforms like Zapier, Make, n8n, and vCloud Group AI to operate close to the core infrastructure that supports them. This compute layer is where the physical “work” of AI happens.
Above this sits the AI model execution layer, provided by companies such as OpenAI, Google Gemini, Anthropic Claude, Perplexity, and Grok. These companies supply the actual large language models that interpret requests and generate responses. When an AI agent sends a prompt, the compute layer routes the request to these cloud AI endpoints, which perform the inference and return the result.
Finally, at the top of the stack is the workflow and automation layer, where businesses interact with AI in practical ways. This is where vCloud Group AI operates. Our systems orchestrate tasks, interpret communication, extract insights, manage processes, and use AI model outputs to help users save time. This layer transforms raw AI capability into meaningful business impact.
Together, these four layers form a cohesive ecosystem. NEXTDC provides the environment. MSPs and enterprises build the compute. Global AI providers supply the intelligence. And vCloud Group AI turns it all into automation that drives real-world value.
Why AI Workloads Are More Demanding Than Traditional Compute
AI is unlike any previous generation of computing. Traditional workloads operate at a steady, predictable level. AI workloads behave more like high-performance engines running at full throttle. They draw huge bursts of electricity, generate massive heat output, and depend on extremely low-latency communication between hardware components.
A single GPU server can consume more power than an entire rack of regular servers. Multiply that by dozens or hundreds of servers, and the demand becomes enormous. AI also demands sophisticated networking — often requiring 100G, 400G, or even 800G fabrics — to move data fast enough to keep the models operating efficiently.
This level of performance cannot be supported by legacy data centre design. It requires the kind of next-generation engineering NEXTDC has become known for.
Power: The Fuel That Keeps AI Alive
AI relies on stable, high-density power delivery. If the power fluctuates or drops, AI inference slows, results become inconsistent, or hardware shuts down to prevent damage.
NEXTDC’s electrical engineering is essential here. Their facilities provide dual power feeds, redundant UPS paths, fault-tolerant distribution, and industrial-grade generator systems to guarantee continuity. These aren’t optional features — they are fundamental requirements for AI systems that must run continuously and respond in real time.
For vCloud Group AI, this is especially important. Our automation tools rely on consistent performance, and NEXTDC’s power infrastructure ensures our systems stay online, responsive, and accurate.
Cooling: The Silent Workhorse Behind AI Performance
AI hardware produces extraordinary amounts of heat. GPUs and AI accelerators running at full load generate far more thermal output than traditional servers. Without advanced cooling, hardware throttles down, which directly impacts AI speed and reliability.
NEXTDC solves this with next-generation cooling infrastructure. They use precision cooling, hot and cold aisle containment, rear-door heat exchangers, and liquid cooling readiness to maintain safe operating temperatures. These systems allow AI hardware to run continuously at peak performance without risk of overheating.
Cooling is not just a technical detail — it is one of the defining factors of AI performance in the real world.
Connectivity: The Nervous System Linking AI to the World
AI is not an isolated system. It communicates constantly with cloud model endpoints, internal platforms, and workflow engines. This requires high-speed, low-latency connectivity.
NEXTDC offers some of the most advanced interconnection environments in Australia. Their carrier-neutral model provides direct access to every major network, cloud provider, and telecommunications carrier. This gives organisations the flexibility to design AI architectures that are robust, scalable, and globally connected.
This connectivity ensures that vCloud Group AI’s systems can route requests efficiently to OpenAI, Gemini, Claude, Perplexity, Grok, and other
providers without bottlenecks.
NEXTDC: The Leader — and a Future Global Powerhouse
NEXTDC is widely recognised as Australia’s premier data centre network. Their engineering, reliability, and innovation set the standard for AI-ready infrastructure across the country. But beyond national leadership, NEXTDC is also expanding globally — building towards becoming a significant international presence in the data centre world.
As AI adoption accelerates globally, NEXTDC’s infrastructure will play a critical role in supporting the next generation of digital workloads. Their facilities are not just data centres — they are purpose-built environments where AI lives, evolves, and scales.
Their facilities allow us to deliver automation that is stable, reliable, and capable of supporting the growing demands of modern AI.
Conclusion
Artificial intelligence may feel digital, but its success depends entirely on physical reality — buildings, power circuits, cooling systems, fibre networks, and the infrastructure that houses the compute. AI does not float in the cloud. It lives in the data centres that support it.
NEXTDC provides that environment. MSPs and enterprises deploy the compute inside it. Global AI providers supply the intelligence. And vCloud Group AI transforms that intelligence into automation that gives people time back every day.
This is the new AI ecosystem — engineered, interconnected, physical, and powerful.
And it all begins with where the AI lives.