Datagrid New Zealand has secured full resource consent for its ambitious hyperscale data center campus near Invercargill, a project billed as the country's first AI factory. This pivotal approval allows construction to begin on what will be the largest such facility in New Zealand. The development signals a major advancement for the nation's digital infrastructure and its standing in the global technology sector.
A Milestone for New Zealand's Digital Infrastructure
The Invercargill City Council, alongside the Southland District Council and Environment Southland, has granted the necessary approvals for the project's initial phase. This decision represents a significant milestone, culminating years of planning and collaboration to bring the initiative to fruition. The consent paves the way for the physical construction of the advanced digital facility to begin in the Southland region.
The campus will be situated on a 43-hectare plot in Makarewa and will feature a 78,000-square-meter AI factory. Once fully operational, the facility is projected to consume 280MW of power, making it the second-largest electricity user in the country. This scale underscores the project's ambition to provide a secure and reliable home for critical data infrastructure.
Powering the Future with Sustainable Energy
A core component of the project is its commitment to sustainability, with the campus set to be powered entirely by 100 percent renewable energy. A direct connection to the national grid via a dedicated substation will ensure a stable and green power supply. This focus on clean energy aligns with New Zealand's environmental goals and international standards for sustainable data management.
The choice of Southland as the location provides distinct environmental advantages, particularly its naturally cool climate. These conditions offer significant energy-efficient cooling opportunities, reducing the operational carbon footprint of the data center. This strategic positioning leverages local geography to meet high international benchmarks for efficiency and responsible operation.
Enhancing Global Connectivity
In a parallel development, the landing of the Tasman Ring Network subsea cable at Oreti Beach has also been fully approved. This marks the first time an international subsea cable will connect directly to the South Island. The new infrastructure is essential for providing the high-speed, low-latency connectivity required by a hyperscale data center.
This enhanced global link is expected to be a catalyst for New Zealand's expanding digital economy. By improving international data flows, the cable will support the growth of local technology sectors and attract further investment. The project helps solidify New Zealand's position as a secure and trusted hub for data in the Asia-Pacific region.
Economic Impact and Community Collaboration
The economic benefits for the region are projected to be substantial, with the construction phase alone expected to create over 1,200 skilled and technical jobs. Beyond the initial build, the operational data center will provide a significant and lasting boost to the local Southland economy. This infusion of employment and investment is a key outcome of the large-scale development.
Datagrid founder and chief executive Remi Galasso extended his gratitude to the iwi, landowners, local councils, and the wider Southland community for their support. He emphasized that the approval was the result of years of dedicated collaboration and partnership. This community engagement was crucial in navigating the complex process and ensuring the project's successful launch.
The comprehensive approval for Datagrid's AI factory and the associated subsea cable marks a transformative moment for Invercargill and New Zealand. This landmark project is set to significantly bolster the nation's digital infrastructure and create valuable economic opportunities. Ultimately, it positions the Southland region as an emerging and vital digital destination on the global stage.