New Zealand’s digital infrastructure just took a significant leap forward, and Simpson Grierson is proud to have played a central role in making it happen.

We advised Datagrid New Zealand on securing resource consent for what will become the country’s first hyperscale AI factory: a NZ$3.5 billion data centre campus near Invercargill, positioning Southland as a secure and trusted global data hub.

Development Partner Bill Loutit, who led the Simpson Grierson team, says the project is genuinely historic. “This is a world-leading project and our team was thrilled to collaborate with our client on this landmark work, which will benefit the region and the country.

“Advising on New Zealand’s first hyperscale AI factory is consistent with our firm’s focus on AI and emerging technologies, and demonstrates the depth of expertise we bring to complex, first-of-a-kind infrastructure projects.

“Securing approval for a project of this scale is a significant outcome and reflects the quality of the proposal, the consenting strategy, and the collaborative approach taken with councils, iwi and stakeholders.”

What the project involves

The approved development comprises a 78,000 square metre hyperscale data centre campus on a 49-hectare site in Makarewa, Southland. Designed for large-scale AI training and data-intensive workloads, the facility will draw up to 280MW of electricity. It makes Datagrid New Zealand the country’s second-largest electricity user after the Tiwai Point aluminium smelter,  and will leverage Southland’s cool climate for highly energy-efficient operations.

Alongside the campus, Datagrid is delivering the Tasman Ring Network, a proposed 6,000 km trans-Tasman subsea cable linking Invercargill with Sydney and Melbourne. The landing of this cable at Oreti Beach represents the first international subsea cable connection to New Zealand’s South Island, which materially strengthens Aotearoa’s international digital connectivity and network resilience.

Why this matters for New Zealand

The project is significant on multiple fronts:

• It establishes New Zealand’s first hyperscale AI factory and enhances the digital infrastructure within our shores
• It delivers the South Island’s first international subsea cable connection, with a proposed 6,000 trans-Tasman cable to Australia
• It is anchored by dedicated power, fibre and international connectivity
• It represents a major step in positioning New Zealand as a credible participant in global AI and data infrastructure markets.

During construction alone, the development is expected to generate over 1,200 direct jobs and deliver substantial long-term economic benefits for Southland and the wider New Zealand economy.

Get in touch

If you’d like to discuss large-scale digital infrastructure, AI-enabled development or complex resource consenting, please get in touch with one of our experts.