Datagrid New Zealand secures approval for country’s first AI factory

Approvals have been granted by Southland District Council, Environment Southland, and Invercargill City Council, enabling construction of the facility to move ahead.

The project will see a 78,000sqm AI-focused data centre built in Makarewa, near Invercargill. The facility will include a dedicated Grid Exit Point substation and is designed to support large-scale AI workloads.

Alongside the data centre approvals, the Tasman Ring Network landing at Oreti Beach has also received full consent. The development will deliver the first international subsea cable connection to New Zealand’s South Island, aimed at strengthening international connectivity and supporting the country’s expanding digital infrastructure.

Datagrid said New Zealand’s political stability, renewable energy resources, and geographic position make it an attractive location for digital infrastructure investment. The company also highlighted Southland’s cooler climate as a potential advantage for energy-efficient data centre operations.

During the construction phase, the project is expected to create more than 1,200 skilled and technical jobs in the region. Once operational, the facility will have an estimated power demand of 280MW, which would make Datagrid New Zealand the country’s second-largest electricity user after the Tiwai Point aluminium smelter.

“We extend our sincere gratitude to the iwi, landowners, local councils, and the Southland community for their unwavering support throughout this process,” said Remi Galasso, founder and CEO at Datagrid New Zealand.

“This approval is the result of years of dedication and collaboration, and we are excited about the transformative impact this project will have on Southland and New Zealand as a whole.”

Further project updates are expected in the coming weeks.

Datagrid New Zealand secures approval for country’s first AI factory

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