Wedoany.com Report on Mar 16th, New Zealand company Datagrid New Zealand has received resource consent to build a $3.5 billion, 78,000-square-meter data center in the Makarewa area north of Invercargill. The project, hailed as the country's first "AI factory," is expected to consume 280 megawatts of electricity, making it New Zealand's second-largest electricity user, accounting for approximately 6% of the nation's total annual electricity demand. Co-founder Rémi Galasso stated, "This approval is the result of years of dedication and collaboration, and we are excited about the transformative impact this project will have on Southland and across New Zealand." Technology expert Mark Laurence noted that the data center will be dedicated to AI training and inference, leveraging New Zealand's cool climate for natural cooling to reduce energy consumption.
As AI data centers advance in New Zealand, the country faces challenges in AI skills development. Laurence warned that New Zealand is at risk of "AI illiteracy," with statistics showing that the country's pace and capability in training for the use of AI tools lag behind most developed economies globally, potentially impacting economic growth. He cited that once operational, the data center could process approximately 960 million ChatGPT conversations per day, representing 5% to 10% of global AI chatbot processing volume. However, its output will be transmitted via submarine cables to overseas markets, while Microsoft and Amazon Web Services data centers in Auckland serve local demand. Laurence emphasized, "Building the infrastructure is exciting, but it needs to be matched with a national capability training program so we can actually leverage those outputs for the benefit of the economy."
Sheree Casey, CEO of the Southland Business Association, stated that the data center will bring opportunities to the regional economy, generating hundreds of millions of dollars in data service exports annually and adding approximately $60 million to GDP. The construction phase is expected to create over 1,200 technical jobs and inject around $4 billion. Matt Webb from grid operator Transpower said the national grid is confident in meeting the energy demand, with 1,300 megawatts of new renewable energy projects planned to come online by 2026. Webb said, "Confirming a load of this scale gives investors confidence in renewable energy investment." The project highlights New Zealand's need to balance AI infrastructure with skills development.
