TELECOM

Datagrid AI Factory: Makarewa, Southland

Datagrid · Southland

A 78,000 square metre hyperscale AI data centre campus on 49 hectares at Makarewa, north of Invercargill, consented in March 2026 as a $3.5b investment. At about 280MW it would be the country's second-largest electricity user after Tiwai Point, fed by a dedicated Transpower grid exit point and a 140MW Mercury deal. Full buildout runs into the 2030s.

Favourable signals Data: High

Delivery Confidence Score, 0 to 100, higher is better: a ranking of how strong this project's delivery signals are, not a probability. It blends eight factors, including the election risk and policy alignment shown below.

Breakdown▾

Data current as at 16 Sept 2026, when the pipeline was last checked against its source.

Key facts

Region: Southland
Sector: Telecom
Status: Under Construction
Estimated value: $3.5b
Indicative completion: 2028
Funding status: Part Funded
Lead organisation: Datagrid
Election risk: Safe

Election risk assessment

Privately funded and largely election-independent, but faces power-supply, grid-connection and subsea-cable hurdles. Its 280MW demand (NZ's 2nd-largest user after Tiwai) draws scrutiny.

Government priority alignment

MEDIUM: Major digital + energy infrastructure and FDI; very large electricity demand.

Recent changes

2026-W37Major New project added: Datagrid AI Factory: Makarewa, Southland (Under Construction, $3.5b).

Chronology

2023Datagrid proposes a hyperscale AI data centre campus for Southland
2026Consented (March); 140MW power deal signed with Mercury; subsea cable landing approved at Oreti Beach
2026Horizontal works begin on the 49ha Makarewa site (HEB Construction); foundation platform for the data centre, cable landing station and substation due by year end
2028expectedInitial operations targeted

Source

Datagrid ↗ · RNZ: Datagrid begins work on Southland site, completion expected this year ↗

View Datagrid AI Factory: Makarewa, Southland on the live map →