People living near the site of New Zealand\u2019s first planned AI datacentre are calling for more transparency about the project, especially about how the centre\u2019s huge electricity and water use and potential noise pollution could affect them.<\/p>\n
Singapore-based company Datagrid has secured approval to build a NZ$3.5bn (US$2bn) AI datacentre on a 49-hectare site in Makarewa, just north of New Zealand\u2019s southern-most city, Invercargill. Construction is due to begin this year, with the centre becoming operational by 2028.<\/p>\n
The facility will be used for AI training, processing and data storage and will serve global AI and cloud providers, says the company\u2019s website. Datagrid also plans to build a high-speed internet cable between Invercargill and Australia.<\/p>\n
Datacentres require large amounts of electricity, water and land, and their rapid growth is igniting debate and protest<\/a> around the world, as communities grapple with the associated environmental<\/a> issues, increasing power bills<\/a> and claims that they are not seeing local economic benefits<\/a>, despite data company promises.<\/p>\n The centre in Makarewa will become New Zealand\u2019s second largest user of electricity, after the nearby Tiwai Point aluminium smelter, using 280MW of electricity.<\/p>\n Local authorities have hailed the project as a win for the region, saying it will create jobs and sped up the internet. The company says about 1,200 jobs will be created during the construction phase, and about 50 permanent positions on completion.<\/p>\n But Angus Dowell, an economic geographer whose PhD project looks at the construction of datacentres said there were \u201ca lot of red flags,\u201d about the project, and about New Zealand\u2019s push to become an AI hub.<\/p>\n The Tiwai Point Aluminium Smelter in Invercargill. Photograph: Dianne Manson\/Getty Images<\/p>\n \u201c[The centres] provide short term economic benefits in the form of construction, but they\u2019re very, very low employers long term, and so the long term benefits to local economic development are just not there, they don\u2019t stack up,\u201d he said.<\/p>\n Residents in the neighbouring community are worried about the development.<\/p>\n \u201cLocals down here kind of feel like we\u2019ve had our region sold out from underneath us,\u201d said Kelly Blomfield, the chair of the Southland Sustainable Resource coalition, an advocacy group that monitors regional infrastructure projects.<\/p>\n \u201cI think that most people\u2019s actual concern is that we don\u2019t find out anything until its done,\u201d she said, adding that attempts to gather more information from Datagrid have been unsuccessful.<\/p>\n The centre is part of the New Zealand government\u2019s attempts to attract foreign investment and build datacentres. Government agency Invest New Zealand wants to secure NZ$25-30bn in foreign investment to build datacentres and AI infrastructure, the agency said.<\/p>\n New Zealand \u201coffers a compelling opportunity\u201d and \u201ca safe harbour\u201d for investment because of its access to renewable energy, available land and cool climate, the agency says on its website.<\/p>\n \u201cThese fundamentals are supported by excellent digital connectivity, a skilled workforce, internationally competitive pricing, and a strong rule of law.\u201d<\/p>\n Meanwhile, a report from Boston Consulting Group for the agency claims the industry could \u201cunlock up to $70bn of economic activity\u201d over the next decade.<\/p>\n But Makarewa resident, Amanda, who wished to give her first name only, says her early ambivalence about the project has changed to concern.<\/p>\n \u201cNow that I know a lot more from what I\u2019ve seen overseas, I am alarmed \u2026 not just for Makarewa, but for New Zealand.\u201d<\/p>\n Amanda is worried about water and power use, the potential running of 84 diesel generators if there is a power shortage, and how round-the-clock noise and light will affect the community and farm animals.<\/p>\n Datagrid has approval to discharge air contaminants from up to 84 diesel back-up generators, to draw up to 604,800 litres of groundwater per day, discharge up to 5000 litres of treated wastewater a day and remove a nearby wetland, an Environment Southland regional council reports show. <\/p>\n While direct neighbours to the datacentre site were consulted, the broader community was not, and anti-datacentre sentiment is growing, she said.<\/p>\n \u201cI know many people in the community who are not on board with it \u2013 the talk is either of apprehension or negativity.\u201d<\/p>\n Blomfield says she feels like New Zealand has put itself in the race to become an AI datacentre hub \u201cbut no one asked us if we want to be in that race\u201d.<\/p>\n \u201cPeople are starting to understand the scope of it, and people are starting to say: I don\u2019t want this in my back yard.\u201d<\/p>\n