Datagrid pledges less water, generator use at Southland AI factory
The company told business leaders it had slashed its planned water use by 70 percent and more than halved its backup generator requirements.
Datagrid has revealed plans for a $5 billion AI factory in Southland with a reduced environmental footprint. The company claims it will use 70% less water and fewer than half the number of backup generators compared to its original estimates. At a meeting in Invercargill, Datagrid CEO Rémi Galasso highlighted Southland's cool climate as an advantage for a sustainable digital future.
The factory, set for completion in 2028, could become the country's second-largest electricity user, but Datagrid has pledged to rely primarily on rainwater rather than groundwater. The factory would position Invercargill as a new digital gateway with some of the fastest internet in the country. However, locals have expressed mixed feelings about the project, with some concerns stemming from a knowledge gap and a desire for straightforward answers.
Southland Business Chamber CEO Sheree Carey noted that the community had genuine concerns, particularly around power, water, and generator usage. Opponents have sought a review of Datagrid's resource consents, questioning the environmental monitoring conditions and the potential noise produced by the factory. Datagrid has committed to monthly public meetings to ensure transparency and has chosen to work with the community rather than through the government's Fast-track process.
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