AI Data Centre Project Could Position Invercargill as Emerging Digital Hub
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A major technology project planned for Southland could place Invercargill on the global digital infrastructure map, with approvals now granted for what is being described as New Zealand’s first large-scale “AI factory”.
Datagrid New Zealand has received full resource consent from Southland District Council, Environment Southland, and Invercargill City Council to develop the hyperscale computing campus at Makarewa, just north of Invercargill.
The development will include a 78,000 square metre data centre campus designed to support advanced artificial intelligence computing. When fully operational, the facility is expected to use around 280 megawatts of electricity — making it the second-largest power user in the country after the Tiwai Point aluminium smelter.
For Southland, the project could bring significant economic activity. More than 1,200 jobs are expected to be created during the construction phase, with a range of skilled and technical roles involved in building the large-scale infrastructure.
Datagrid founder and chief executive Rémi Galasso said the project had only been possible through collaboration with local communities and authorities.
“We extend our sincere gratitude – ngā mihi nui – to the iwi, landowners, local councils, and the Southland community for their unwavering support throughout this process,” Galasso said.
“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.”
Alongside the data centre development, approval has also been granted for a new subsea telecommunications cable landing at Oreti Beach. The Tasman Ring Network cable would provide the South Island with its first direct international fibre connection.
Improved international connectivity could strengthen the region’s ability to attract global technology companies and digital services that rely on high-speed data links.
Supporters of the project say Southland has several natural advantages for data infrastructure. The region’s cool climate can help reduce cooling costs for large computing facilities, while New Zealand’s renewable electricity supply and political stability are attractive factors for international technology investment.
The proximity of high-capacity transmission lines originally developed for the Tiwai Point smelter also means the region already has access to large amounts of electricity needed for major computing operations.
If the development proceeds as planned, Invercargill could evolve from a regional city at the southern edge of New Zealand into a key location for global digital infrastructure, with the project potentially attracting further technology investment to Southland in the years ahead.