‘A lot of red flags’: plans for New Zealand’s first datacentre spark concern as locals demand greater transparency
Summary
A Singapore-based company, Datagrid, plans to build New Zealand’s first AI datacentre near Invercargill, with construction starting this year and operations by 2028. Local residents are concerned about the project's environmental impacts, including high electricity and water use, noise, and limited long-term local benefits, while authorities highlight potential job creation and economic growth.Key Facts
- Datagrid received approval to build a NZ$3.5 billion AI datacentre on a 49-hectare site in Makarewa, near Invercargill.
- The datacentre will serve AI and cloud providers globally and plans to build a high-speed internet cable to Australia.
- It will be New Zealand’s second largest electricity user, consuming 280 megawatts.
- Construction will create about 1,200 jobs, with around 50 permanent positions after completion.
- Residents worry about environmental effects like high water use, noise pollution, and the use of up to 84 diesel generators during power shortages.
- Some experts doubt the long-term economic benefits for the local area, pointing out limited permanent jobs.
- The New Zealand government supports datacentre projects to attract NZ$25-30 billion in foreign investment and grow AI infrastructure.
- A report estimates the datacentre industry could generate up to NZ$70 billion in economic activity in the next decade.
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