Political pressure and public scrutiny are growing over Datagrid’s proposed $3.5 billion AI data centre at Makarewa, following last week’s packed public meeting and continuing concerns about the project’s non-notified consent, resource demands, infrastructure impacts and wider data-sovereignty implications.
As RCR reported last Thursday, hundreds of locals packed the Invercargill Workingmen’s Club to hear more about the company’s planned 78,000-square-metre facility at Makarewa. They questioned the complex’s electricity demand, noise, water use and potential infrastructure impacts. Concerns were also raised about dependence on foreign-controlled technology companies, data sovereignty and the use of customer information to train AI systems. Datagrid did not attend the meeting.
The centre is expected to open in 2028 and will use about 280 megawatts of power, making it New Zealand’s second-largest single electricity user behind the Tiwai Point aluminium smelter. It also has consent to draw more than 600,000 litres of groundwater daily, but the company said it does not currently intend to use groundwater, instead proposing to cool the facility using Southland’s low average temperatures and harvested rainwater.
Datagrid also maintained the project would unlock new renewable generation rather than add pressure to the existing electricity network. Mercury has invested $53 million for a minority stake in the company after signing a 140-megawatt power purchase agreement. The company says construction would create around 1,200 jobs, although the completed facility would employ about 80 permanent staff.
Somewhat in response to the concerns, the Green Party has called for a one-year pause on all AI data centre consents so that regulations could be written. Prime Minister Christopher Luxon rejected a moratorium, while Labour supported urgent regulation and ACT opposed restrictions that could discourage new technology.
Similar disputes have emerged in Britain. Residents in Slough, home to 40 data centres, have spoken about heat and low-frequency noise, while preliminary Cambridge-led research suggests data facilities could raise temperatures in surrounding areas by an average of 2°C.
Read more at 1 News, RNZ, What’sOnInvers, Newsroom, DailyMail UK and Carina Ovesen on X. And for RCR’s earlier coverage, listen or watch Paul Brennan’s interview with Kelly Blomfield on the Southland data centre and learn more on RCR’s Rural Report.
Image credit: Getty Images
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.
The infection of Zion Satanism in New Zealand Continues… No need for such a large complex in such a small Country of only 5.5x million people. Whats it really For? Which political party will have this on their books for the Nov 2026 Selection. Vote small or not at all..
Will the data centre pay for the water usage?
Make them pay for their own power generation. The country only has just enough for US the consumers! We paid for the infrastructure and our ancestors built it. It’s NOT for foreign high users.
THATS A LOAD OF POWER ITS GOING FOCE MY POWER BILL UP NO LUXO SELLOUT.
AND FOR WHAT THIS IS A B/S SURVEILLANCE INDUSTRY.
While net zero is being waved around, what is the carbon footprint of a data center of this size and capacity? If they emit enough heat to raise the surrounding temperature by 2 degrees, exactly what are the emissions?
They always bang on about jobs when MNO’s set up shop but not the millions in revenue flooding off shore or the strain placed on our infrastructure, much of which is publicly funded.
Alien intelligence be very careful the downfall of the human race wake up you dumb people.
This is not about data/AI.
It is about surveillance and CONTROL over YOU and YOUR children!
thank you southland! from Auckland!
What do they produce in the countries interest. Nothing but future digital oppression
Elites caught pumping human remains into water supply.to fuel Satanic ai data centers https://rumble.com/v7cjnds-elites-caught-pumping-human-remains-in-water-supply-to-fuel-satanic-ai-data.html?e9s=src_v1_s%2Csrc_v1_s_o&sci=d047a8a5-db1a-471e-b6a2-78ab334147c9
https://wltreport.com/2026/07/26/openai-announces-which-state-company-intends-to-build-its-largest-ever-data-center/
You would think that the privacy act might have to change to something like this.
The government reserves the right to collect any conversation during all phone calls, video calls, microphones regardless and video regardless if you are on a call or not.
The goverment will collect all locations, all search data, all bank transactions. All data whatsoever and sell or share this with anyone or foreign nation they alone sees fit. Store this information forever.
I do not recall any politician who campaigned on this database. This is not democracy. This is playing god.
It’s “Corporate Democracy” under Civil Law/Roman Civil Law jurisdiction (law of the sea as opposed to law of the land). Known as the Justinian Deception, which goes back to Rome.
Chloes finally got something right