Invercargill Leaders Back Data Centre

Southland business leaders have thrown their support behind the $3.5 billion data centre at Makarewa.

Southland Mayor Rob Scott and the Southland Business Chamber are excited about the new Datagrid development, and the opportunities it will bring to the region.

Former Mayor of Invercargill Nobby Clark backed it from the start, but he’s experienced plenty of online abuse as a result.

Hundreds of people packed into the Invercargill Workingmen's Club last week, organised by the Southland Sustainable Resource Coalition, to voice their concerns about the data centre.

People are worried about the environmental impact, water use and noise pollution.  
The initial consent in October 2023 was notified and dealt with by an independent commissioner - neighbouring residents in Makarewa were also consulted as part of the process.

But a further non-notified consent process allowed the company to bring an underwater high-fibre cable across the sea as part of the Tasman Ring Network.

Southland Business Chamber chief executive Sheree Carey said the Datagrid development has the potential to create substantial opportunities for Southland businesses, particularly across construction, engineering, transport, hospitality, security, maintenance and professional services.

“The long-term value is not limited to the jobs located inside the data centre. The associated electricity and international cable infrastructure could improve Southland’s connectivity and help attract further technology and infrastructure investment to the region.”

Sheree said from the Chamber’s perspective, their job is to help local businesses understand and prepare for those opportunities, “while also supporting open and factual discussion about the project’s impacts."

“This is not simply one large construction project. It has the potential to create a new layer of digital infrastructure that other Southland businesses and future investors can build around.”

The data centre is expected to open in 2028 and construction will create 1200 jobs - dropping down to just 80 staff when it’s open.

Datagrid has addressed concerns over the use of water for the facility, saying Southland’s 9-10°C average annual temperature allows the facility to rely entirely on free cooling from ambient outside air.

There has also been suggestions water and waste water could be used for a large market garden in the community, and the company has been talking to the local primary school about the impact on roll growth.

The company said the centre would not be a burden on the electricity network and during any unintended shortages can use 70 back-up diesel generators instead.

Mercury Energy recently announced it bought a 12% stake in Datagrid for $53 million. The company and Mercury also signed a 140MW long-term power purchase agreement in March.

Once built, the data centre will be New Zealand’s second-largest industrial consumer behind Tiwai Point Aluminium smelter.

Sheree said the business chamber is also in the process of organising an event at SIT Centrestage Theatre late August for the business community to hear more about the project and opportunities for local organisations.

More details will be available shortly.