NZ InfraWatch
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Datagrid AI Factory: Makarewa, Southland
Datagrid · Southland
A 78,000 m2 hyperscale AI data centre campus on 49 hectares at Makarewa, north of Invercargill, consented March 2026. The campus is a NZ$3.5b investment. Earthworks began in 2026: HEB Construction is building an access road to SH98 and shaping excavated topsoil into a six-metre noise bund. The platform for the data centre, cable landing station and substation is due by the end of 2026. 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, and linked to the Tasman Ring subsea cable at Oreti Beach. Full buildout runs into the 2030s.
Data current as at 13 Jun 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.
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
- 2028Initial operations targeted
Source
Datagrid ↗ · RNZ: Datagrid begins work on Southland site, completion expected this year ↗