New Zealand Locals Press Datagrid Over NZ$3.5 Billion AI Datacentre as 280MW Project Nears Construction
Updated
Updated · The Guardian · Jul 10
New Zealand Locals Press Datagrid Over NZ$3.5 Billion AI Datacentre as 280MW Project Nears Construction
2 articles · Updated · The Guardian · Jul 10
Summary
Makarewa residents are demanding more disclosure on Datagrid’s NZ$3.5 billion AI datacentre, saying they still lack clear answers on power use, water draw, noise, light and local impacts before construction starts this year.
The approved project north of Invercargill would become New Zealand’s second-largest electricity user at 280MW, draw up to 604,800 litres of groundwater a day and rely on permits covering 84 diesel backup generators.
Datagrid says the site’s cool climate limits water needs and that long-term renewable power deals mean it will not compete with households, but residents and researchers describe the project as opaque and question its long-term local benefits.
The company forecasts 1,200 construction jobs and about 50 permanent roles by its planned 2028 opening, while local authorities back the project as a regional boost and faster-connectivity play.
The dispute lands as New Zealand courts foreign AI infrastructure investment, with Invest New Zealand targeting NZ$25 billion to NZ$30 billion for datacentres and related projects.
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Building New Zealand’s First AI Factory: Datagrid’s NZ$3.5B Data Centre, Economic Promise, and Sustainability Challenges
Overview
The approval of Datagrid’s NZ$3.5 billion AI-focused data centre campus in Makarewa, Southland, marks a major step for New Zealand’s digital future. As the country’s first 'AI Factory,' this project is set to boost Southland’s profile and position it as a key player in the fast-growing digital economy. The development is expected to bring significant economic benefits, including job creation during construction and long-term growth opportunities. By establishing this advanced data centre, New Zealand strengthens its standing in the global technology sector and opens the door to a $70 billion economic opportunity.