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AI & Machine Learning

New Zealand's First AI Datacentre Sparks Concern Over Environmental Impact

WireByte Staff · July 10, 2026

Singapore-based company Datagrid has secured approval to build a NZ$3.5bn AI datacentre in New Zealand, sparking concerns over its massive electricity and water use, noise pollution, and potential environmental impact. The facility will be operational by 2028, creating 1,200 jobs during construction and 50 permanent positions. Local authorities hail the project as a regional win, but residents demand greater transparency.

Key points

  • Datagrid, a Singapore-based company, has secured approval to build a NZ$3.5bn AI datacentre in Makarewa, New Zealand.
  • The facility will use 280MW of electricity, making it New Zealand's second-largest electricity user, after the Tiwai Point aluminium smelter.
  • Construction is set to begin this year, with the datacentre operational by 2028, creating 1,200 jobs during construction and 50 permanent positions.
  • Local residents are demanding greater transparency about the project's environmental impact, including electricity and water use, and potential noise pollution.
  • The datacentre will serve global AI and cloud providers, with Datagrid also planning a high-speed internet cable between Invercargill and Australia.

The planned AI datacentre in Makarewa, New Zealand, has sparked concerns over its environmental impact. Datagrid, the Singapore-based company behind the project, has secured approval to build the NZ$3.5bn facility on a 49-hectare site. The datacentre will use 280MW of electricity, making it New Zealand's second-largest electricity user, after the Tiwai Point aluminium smelter.

Local residents are demanding greater transparency about the project's environmental impact, including electricity and water use, and potential noise pollution. While local authorities hail the project as a regional win, citing the creation of 1,200 jobs during construction and 50 permanent positions, residents are worried about the facility's massive energy demands and potential environmental consequences.

The datacentre will serve global AI and cloud providers, with Datagrid also planning a high-speed internet cable between Invercargill and Australia. The project's environmental impact is set to be a contentious issue, with communities around the world grappling with the associated environmental issues, increasing power bills, and claims that they are not seeing local economic benefits.

Sources

WireByte Staff — Editorial Team

The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.