Plans For a Second Data Centre in the South

Makarewa could be the site of the country’s first carbon-neutral data centre, creating up to 25 new jobs for Southlanders – and consent has already been lodged for another one at the Clyde Dam in Central Otago.

Datagrid is the company behind the Southland project, and has partnered with Meridian Energy, with the first stage expected to cost up to $100 million, using the 43ha site that it recently acquired.

The company was founded by Remi Galasso who is a telecom industry veteran with over 20 years experience, and is also behind another related project, creating one of the world’s longest subsea internet cables.

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To power this new hyper-scale data centre, his other company Hawaiki Cable will connect the South Island to the United States, Australia and Asia using a 22,000 cable linking Invercargill and Dunedin with Los Angeles, Hawaii, Singapore and Jakarta.

This in turn will also boost the entire country’s IT industry.

Meanwhile, Contact Energy is also planning a new data centre below it’s Clyde Dam construction, partnering with UK-based company Lake Parime.

The community currently has mixed views on the proposal, which also includes a new substation, to be built and run by Aurora Energy – to power it.

A resource consent has already been lodged with the Central Otago District Council for the project.

Southland was chosen for the Meridian Energy development in Makarewa because it had access to hydro power (Manapouri), cool weather and a safe environment, Remi said.

Datagrid would apply for resource consent from the Southland District Council later in the year and hopes to have the first stage up and running by the end of 2023.