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‘A lot of red flags’: plans for New Zealand’s first datacentre spark concern as locals demand greater transparency

Summary

Plans to build a NZ$3.5bn AI datacentre in Makarewa, New Zealand, have drawn concern from locals over electricity and water use, and potential noise pollution. Singapore-based Datagrid has secured approval for the 49-hectare site, with construction due to begin this year and operations by 2028. Residents are calling for more transparency from the company.

SourceThe Guardian AIAuthor: Eva Corlett in Wellington
‘A lot of red flags’: plans for New Zealand’s first datacentre spark concern as locals demand greater transparency
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Plans to build a NZ$3.5bn datacentre in Makarewa in the country’s south has drawn concern about electricity and water use, and potential noise pollution

People living near the site of New Zealand’s first planned AI datacentre are calling for more transparency about the project, especially about how the centre’s huge electricity and water use and potential noise pollution could affect them.

Singapore-based company Datagrid has secured approval to build a NZ$3.5bn (US$2bn) AI datacentre on a 49-hectare site in Makarewa, just north of New Zealand’s southern-most city, Invercargill. Construction is due to begin this year, with the centre becoming operational by 2028.

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Key points and analysis

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Key points

  • Singapore-based Datagrid plans to build New Zealand's first AI datacentre in Makarewa for NZ$3.5bn.
  • Construction is scheduled for 2026, with operations starting in 2028 on a 49-hectare site.
  • Local residents raise concerns about electricity and water consumption, as well as noise pollution.
  • Community demands greater transparency regarding the project's environmental impact.

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