Opponents of a new $3.5 billion hyperscale AI factory in Southland are calling on the developers Datagrid to speak to them face to face.
Hundreds crowded to meet last night at the Invercargill Workingmen’s Club, concerned about the 78,000 square metre data centre soon to be built in Makarewa.
So many turned up[ that some were left standing in the hallway.
Organiser Kelly Blomfield, from the Southland Sustainable Resource Coalition, was surprised by the turnout.
“As we come across more information, we're going to have more evenings like this and opportunities for people to have their say.”
The crowd voiced questions and concerns about power supplies, noise pollution and whether the wider community had been adequately consulted – but Datagrid did not attend.
Blomfield said: "We’ve reached out in good faith and it's a shame but they might come to the next one.”
The centre is expected to open in 2028.
Datagrid said construction will create 1200 jobs but when the centre is fully open, only 80 staff will be needed.
Company addresses water, power concerns
1News requested an interview with Datagrid. The company said in a statement it had all the required approvals before consent was granted.
Datagrid addressed concern over the use of water for the facility, saying: “There will be no groundwater draw whatsoever. Southland’s naturally crisp 9-10°C average annual temperature allows the facility to rely entirely on free cooling from ambient outside air.”
The Datagrid project promises to bring new jobs, with efficient technologies to combat concerns around water and electricity use. Some locals aren't so sure. (Source: Q and A)
Datagrid also said the centre would not be a burden on the electricity network. “The project actively unlocks new, cheap renewable energy. This influx of clean energy increases total national supply, supporting lower long-term wholesale power costs for everyday Kiwis.”
Today, Mercury also announced it bought a 12% stake in Datagrid for $53 million. Datagrid and Mercury also signed a 140MW long-term power purchase agreement in March.
But some critics are unconvinced that consumers will benefit.
Simplicity managing director Sam Stubbs told 1News: “What we have seen with data centres now, and there's a lot of evidence, is that they employ very few people, they pay very low taxes, they're masters at paying the lowest possible taxes but they consume a huge amount of power and the last thing New Zealanders need right now is higher power bills.”
Southland Mayor Rob Scott said the proposal had followed the Resource Management Act process.
“The technology at the moment with AI and everything else is moving in a pace that the world can't actually keep up with.
And I think we're getting a consequence of that now. So we're all trying to work within the rules and the regulations that we've got, and sometimes, they need to be challenged.”
Alongside the data centre, Datagrid is also developing a high-fibre cable linking Invercargill with Australia, called the Tasman Ring Network.
The Datagrid project promises to bring new jobs, with efficient technologies to combat concerns around water and electricity use. Some locals aren't so sure. (Source: Q and A)
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