Summarised by Centrist

The government is developing rules for hyperscale data centres as opposition grows to a proposed $3.5 billion AI facility at Makarewa, north of Invercargill.

Hundreds of Southland residents attended a public meeting to question the Datagrid project’s electricity demand, noise, water use and infrastructure effects. Concerns were also raised about foreign-controlled technology companies, data sovereignty and the possible use of customer information to train AI.

The 78,000-square-metre facility received resource consent without public notification. Datagrid did not attend the meeting.

Expected to open in 2028, the centre could use up to 280 megawatts of electricity, making it New Zealand’s second-largest single power user behind the Tiwai Point aluminium smelter.

It has consent to draw more than 600,000 litres of groundwater daily, although Datagrid says it plans to use harvested rainwater and Southland’s cool climate instead.

The company says the project will help unlock new renewable generation rather than burden the existing grid. Mercury has invested $53 million in Datagrid and signed an agreement to supply 140 megawatts.

Construction could employ about 1,200 people, while the completed centre is expected to provide around 80 permanent jobs.

Prime Minister Christopher Luxon has directed ministers and officials to develop a “compact” setting out the conditions large data centres must meet.

“This is the deal by which you come into New Zealand if you want to build out a data centre,” Luxon said.

Major facilities would “absolutely” have to demonstrate “additionality” by supporting new electricity generation rather than relying entirely on existing supply.

The Greens want a one-year pause on new large-scale data-centre consents while regulations are developed. Luxon called a moratorium “alarmist”, Labour supported urgent regulation, and ACT warned against restrictions that could deter investment.

Read more over at 1News and Daily Telegraph NZ

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