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'Not a trivial amount': Concerns NZ's first AI factory will strain South Island's electricity network

Author
Newstalk ZB,
Publish Date
Fri, 13 Mar 2026, 8:39am
Artist's impression of the proposed Datagrid data centre in Southland. Photo / Datagrid | File
Artist's impression of the proposed Datagrid data centre in Southland. Photo / Datagrid | File

'Not a trivial amount': Concerns NZ's first AI factory will strain South Island's electricity network

Author
Newstalk ZB,
Publish Date
Fri, 13 Mar 2026, 8:39am

A massive new power user could put extra pressure on the South Island’s electricity system. 

Datagrid has just received resource consent for a $3 billion, 78 thousand square metre data centre north of Invercargill. 

About 1,200 jobs will work on the construction and about 50 people will staff the facility. 

It will be the second-largest power user in the country behind the nearby Tiwai Aluminium Smelter. 

Auckland University computer science lecturer Ulrich Speidel told Mike Hosking it's going to shift the power balance in the South Island quite a bit. 

He says in terms of power use, that’s about 70% of what Christchurch consumes, and you can’t just add major power users without eventually running into generation limits. 

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