Tuesday, July 21, 2026

Data centre resource drain highlighted as more locations confirmed

Southland data centre

Concerns have been raised over water consents granted to Singapore’s Datagrid for its planned AI facility in Makarewa, Southland, allowing it to draw more than 600,000 litres of groundwater a day, despite the company saying it expects to rely primarily on rainwater.

Water New Zealand engineer Evan Vaughter compared the water use to that of a small town and questioned how the demand would be met.



The centre will also become the second-largest electricity user after Tiwai Point Aluminium Smelter when it opens in 2028. Invest New Zealand, has confirmed further high-energy data centres are being considered for the South Island in Twizel, Ohau, Geraldine and Cromwell. Read more at RNZ and ODT.

This story has been republished with permission from RCR Bites. For news like this direct and free to your Inbox every day, go to biteme.news to sign up for RCR Bites.

Image credit: Getty Images

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1 COMMENT

  1. Quick buck now, forget about later, that’s how government operates in New Zealand. Long term planning is never a consideration, that’s n large part why the nation is such a mess.

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