Southlanders not buying Datagrid's promises of scaled-back AI factory

Progressive voices in Southland have rebuffed Datagrid's promises to reduce the scale of its planned AI factory, vowing to continue their fight against the $5 billion development. Earthworks commenced this week at the Makarewa site, which is slated to become the country's second-largest electricity consumer, with consent applications to extract up to 600,000 litres of groundwater daily.

Datagrid's senior executives assured local business leaders on Tuesday that the backup generator requirements had been reduced by half and water consumption would drop by 70 percent, relying mainly on rainwater. However, opposition group Southland Sustainable Resource Coalition (SSRC) members maintained their stance against these assurances during a meeting in Invercargill on Wednesday night.

SSRC president Kelly Blomfield criticised the original consents, asserting they should be revoked if the factory's water usage and generator needs are significantly lower than initially claimed. The meeting, which attracted over 150 attendees, addressed concerns about the potential impacts on electricity prices, property values, aquifers, and public health.

Despite ground work having commenced, Southland's community remains steadfast, questioning the project's progress and pursuing legal avenues. Datagrid's CEO, Rémi Galasso, marketed the project as the "most sustainable data centre in the Asia Pacific," citing Southland's cooler climate as a sustainability advantage. However, SSRC continues to seek a formal review of Datagrid's resource consents, questioning environmental monitoring conditions and the factory's low-frequency noise production.

Southland District Council is evaluating whether to initiate a review, with a decision expected by September 5. Despite Datagrid's claim that its facility would not surpass rural nighttime noise limits, SSRC member Michelle Hayward expressed concerns about potential noise affecting more households than anticipated.