‘A lot of red flags’: plans for New Zealand’s first AI datacentre spark concern as locals demand greater transparency

Plans to build a NZ$3.5bn datacentre in Makarewa in the country’s south has drawn concern about electricity and water use, and potential noise pollution People living near the site of New Zealand’s first planned AI datacentre are calling for more transparency about the project, especially about how the centre’s huge electricity and water use and potential noise pollution could affect them. Singapore-based company Datagrid has secured approval to build a NZ$3.5bn (US$2bn) AI datacentre on a 49-hectare site in Makarewa, just north of New Zealand’s southern-most city, Invercargill. Construction is due to begin this year, with the centre becoming operational by 2028. The facility will be used for AI training, processing and data storage and will serve global AI and cloud providers, says the company’s website. Datagrid also plans to build a high-speed internet cable between Invercargill and Australia. Datacentres require large amounts of electricity, water and land, and their rapid growth is igniting debate and protest around the world, as communities grapple with the associated environmental issues, increasing power bills and claims that they are not seeing local economic ben