Datagrid New Zealand receives resource consent to establish the nation’s first AI factory
INVERCARGILL, New Zealand – 11 March 2026 – Datagrid New Zealand is pleased to announce that it has received full resource consent approval for its sustainable data center initiative, marking a significant milestone in the development of the New Zealand’s first AI factory. The approvals have been granted by Southland District Council, Environment Southland, and Invercargill City Council, paving the way for construction to commence.
In addition, the landing of the Tasman Ring Network at Oreti Beach has been fully approved, representing the first international subsea cable connection to New Zealand’s South Island. This infrastructure will enhance global connectivity and support the nation’s growing digital economy.
Datagrid New Zealand recognizes New Zealand’s political stability, abundant renewable energy resources, and strategic geographic position as key factors positioning the country to become a secure and trusted global data hub. The natural cooling conditions in Southland offer substantial energy-efficiency advantages, and Invercargill is poised to emerge as a vital digital destination in the coming years.
The approved project includes the construction of a 78,000 square metre state-of-the-art AI Factory in Makarewa, equipped with a dedicated Grid Exit Point substation. During the construction phase, the initiative is expected to create over 1,200 skilled and technical jobs, delivering meaningful employment and economic benefit to the region.
Once operational, the facility will consume 280 MW of power, making Datagrid New Zealand the country’s second-largest electricity user after the Tiwai Point aluminium smelter.
“We extend our sincere gratitude - ngā mihi nui - to the iwi, landowners, local councils, and the Southland community for their unwavering support throughout this process,” said Remi Galasso, Founder and CEO at Datagrid New Zealand. “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 New Zealand as a whole.”
Datagrid New Zealand anticipates further announcements in the coming weeks as the project advances.
About Datagrid New Zealand
Datagrid New Zealand is building the country’s largest hyperscale computing project — a 280MW AI Factory campus in Southland designed to establish New Zealand as a global hub for sustainable AI and digital infrastructure.
Founded in 2021 by tech industry veterans Rémi Galasso and Malcolm Dick, Datagrid is developing a next-generation facility purpose-built for AI training, inference, and high-performance computing. The campus will host high-density GPU clusters serving global AI and cloud providers, powered by a dedicated 220 kV grid connection to Transpower’s transmission network. New Zealand’s cool southern climate and abundant renewable energy will underpin highly efficient, low-carbon operations supported by advanced cooling technologies.
Alongside the campus, Datagrid is delivering the Tasman Ring Network — a new submarine optical cable that will bring high-capacity international connectivity to New Zealand’s South Island for the first time.
Together, these projects form an integrated platform that leverages New Zealand’s natural and geographic advantages to attract world-class digital investment, drive regional economic growth, and position the country at the forefront of the global AI economy.
Datagrid Data Center Park
Datagrid Tasman Ring Network