3 April 2025
Datagrid eyeing 2028 opening of new data centre
Datagrid NZ is aiming to open the first phase of its US$2 billion (NZ$3.5b) data centre at Makarewa by 2028, but it’s still awaiting resource consent.
The company is hoping that upcoming changes the to Resource Management Act will mean it’s resource consent to build on the land — which is classified as highly productive farm land — will be granted by the end of the year.
It is also considering its own, or partnered, infrastructure options to power the centre — which is expected to need twice as much power as the New Zealand Aluminium Smelter when all phases are complete.
Artificial intelligence (AI) was changing so fast that it constantly needed more computing density, which meant power requirements were increasing every six months, she said, “which makes it difficult to design for”.
The company was confident it could access the 240 megawatts of power from existing supply needed for the first phase of the project, Dhalluin said.
She and Datagrid New Zealand founder Rémi Galasso presented their plan to members of Southland’s construction community last week and Dhalluin said the company was hoping to use innovative building practices and use the region’s climate to cool the centre, rather than relying solely on power.
This was one of the reasons why she had no doubt Datagrid would have little trouble convincing investors to support the project, she said.
“Power is the main barrier and it needs to be green, stable and at an affordable price.”
This could be achieved in New Zealand, but the climate in Southland also meant less power was needed to cool, she said.
The missing ingredient, however, was international connectivity, Dhalluin said.
Investors needed multiple subsea cable connections to make sure their connections were stable and secure.
Datagrid has partnered with Chorus to establish the proposed Tasman Ring Network that will eventually link Invercargill to Sydney and Melbourne and create a loop around New Zealand.
The cable will carry data at 540 terabytes per second and it will be the first New Zealand connection to Melbourne.
It would increase internet speeds for Southlanders by 40 to 50%, Dhalluin said.
“All of this is to open New Zealand to AI and to open Southland to the shopping list of tech giants,” she said.
She had been in talks with government ministers to help them understand the importance of developing an AI capability plan from New Zealand, Dhalluin said.
“AI is the only driver for economic growth today. We can’t miss AI. New Zealand is not ready for AI as a country,” she said, referring to the infrastructure needed.
“They are starting to understand the importance of government involvement in this. They can understand we are already behind.”
Datagrid has applied for fast-track consenting approval to start work on the cable network.
Source: thepress.co.nz April 3 2025