Invercargill is getting its own international undersea cable — the first to land anywhere in the South Island.

Datagrid New Zealand has signed contracts with Alcatel Submarine Networks (ASN) and OMS Group to build the Tasman Ring Network, a 2,300 km optical submarine cable running between Invercargill and Melbourne. ASN will supply the cable system; OMS will handle the marine survey and installation.

The cable will carry a minimum of eight fibre pairs with a design capacity of at least 160 Tbps. Until now, all of New Zealand's international submarine cables have landed in the North Island. This one changes that.

Datagrid chief executive Remi Galasso said the project would have tangible benefits for the region. "The Tasman Ring Network will be a game changer for Southland and for the South Island as a whole. It will unlock the potential of the region, and will allow South Island IT companies, universities and research centres to benefit from better internet with latency improved by up to 45 percent compared with existing routes via the North Island. An entire digital ecosystem will be able to benefit from it and grow."

Invercargill Leaders Back Data Centre
Southland business leaders have thrown their support behind the $3.5 billion data centre at Makarewa. Southland Mayor Rob Scott and the Southland Business Chamber are excited about the new Datagrid development, and the opportunities it will bring to the region. Former Mayor of Invercargill Nobby Clark backed it from

Alcatel Submarine Networks chief executive Alain Biston said the company was confident in the project's significance. "ASN is proud to contribute to the opening of a new digital route whose impact will undoubtedly be significant for the economic development of New Zealand. We thank the Datagrid teams for their choice and assure them of our full collaboration in making this project a success."

The marine survey will be carried out using an unmanned surface vessel — no crew, significantly less fuel. OMS Group chief executive Ronnie Lim said the approach reflected a broader commitment to sustainable infrastructure. "By deploying our state-of-the-art unmanned surface vessel for the marine survey, we will drastically reduce the carbon footprint of the survey operations demonstrating our commitment to building critical digital infrastructure in a more sustainable way. Our teams and our regional fleet look forward to carrying out the survey and the installation of the cable safely and on schedule."

Southland Business Chamber chief executive Sheree Carey said the cable's implications stretched well beyond Datagrid's own development. "Improved international connectivity and reduced latency could create real opportunities for technology companies, exporters, researchers and other data-intensive industries across Southland and the wider South Island. It also helps position Southland as a credible location for further digital investment and innovation. This is enabling infrastructure that can support business growth well beyond the Datagrid development itself, and the Chamber welcomes the progress represented by this announcement."

Carey said the Chamber is organising an event at SIT Centrestage Theatre in late August for the business community to hear more about the project and opportunities for local organisations. Further details are to be confirmed.

Datagrid is also developing a hyperscale data centre campus in Makarewa, purpose-built for AI and high-density computing workloads.

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