North Makarewa Data Centre Gets Mercury Cash
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Mercury NZ has bought a stake in the company planning to build New Zealand's largest data centre — right here in Southland.
The energy company has invested US$30 million (NZ$53 million) for a 12.7% minority share in Datagrid Holding Group NZ Ltd, which is developing a 360-megawatt data centre at North Makarewa. The project already holds resource consent. A final investment decision is expected later this year.
Mercury signed a 140MW power purchase option agreement with Datagrid back in March 2026. This equity stake takes that relationship further.
Mercury chief executive Stew Hamilton has been appointed to Datagrid NZ's board. He framed it as a calculated move, not a punt. "Investing in Datagrid NZ is aligned with our core strategy, bolsters our position alongside an important emerging source of long-term electricity demand, and is structured to preserve balance sheet strength and flexibility for our wider capital programme," Hamilton said.
"We have a deep renewable development pipeline, and long-duration demand from large electricity users like Datagrid NZ provides us with the revenue certainty that underpins our investments in new renewable generation developments."
Opponents of Southland's $3.5 billion AI data centre want Datagrid to show up and face them.
Hundreds packed into the Invercargill Workingmen's Club on Wednesday night, concerned about the 78,000 square metre hyperscale facility planned for Makarewa. So many turned up that some were left standing in the hallway.
Datagrid did not attend.
Mercury executive general manager wholesale Tim Thompson said the deal also gave Mercury a clearer read on where AI and data centre demand is heading in New Zealand. "It strengthens our position for future long-term offtake, and provides us with a closer link between future customer demand and renewable generation investment. It is a staged investment with appropriate governance and downside protection," Thompson said.
For Datagrid, the money means construction can start moving. Founder and chair Rémi Galasso said the clock was always the issue. "Time to market is driving our strategy, and closing this round of investment funding allows us to move decisively. Partnering with a leading New Zealand green electricity generator like Mercury is a strategic step for us, not just an electricity supply arrangement."
"Thanks to this new partnership, Datagrid can continue developing its vision for the Southland project and begin horizontal construction works on the site," Galasso said.
The investment is funded from Mercury's existing capital facilities and sits within its current capital management settings — meaning no new debt raised to get the deal done.