A massive AI data centre proposed for Southland has received resource consent despite concerns the project could damage marine life and Māori cultural values, setting up a clash between economic development and environmental protection.
The 78,000 square metre facility in Makarewa, approximately 15 minutes north of Invercargill, would consume 280MW of power—making it New Zealand's second-largest electricity user after the Tiwai Point aluminium smelter, 1News reports.
Developer Datagrid, founded by Remi Glasso, secured full resource consent for the project, which includes a subsea cable landing at Ōreti Beach. The company projects construction will generate over 1,200 skilled and technical jobs.
Invercargill Mayor Tom Campbell enthusiastically backs the project, arguing the subsea cable would give the city "the fastest internet in the country," potentially attracting tech companies and creating "a few hundred jobs based in high tech industries." Southland Mayor Rob Scott also supports it, noting the company has addressed community feedback regarding rainwater collection.
But Environment Southland commissioner Hugh Leersnyder's report identified significant environmental and cultural risks. The undersea cable placement could "disturb marine mammals" and cause behavioral changes through underwater noise. Trenching at Ōreti Beach may damage Māori values including "Mauri, Mahinga Kai, Kaitiakitanga and Rangatiratanga."
The project also involves removing a 2,400 square metre wetland, extracting seven litres per second of water, and discharging up to 5,000 litres of treated wastewater daily.
Mate, here's the tension in a nutshell: jobs and tech investment versus marine ecosystems and cultural heritage. New Zealand loves to market itself as clean and green, but when big money comes calling, those values get tested.
Online commentators were divided. "We need economic development. Can't just say no to everything," one argued. Others were skeptical: "280MW for AI servers while we lecture the world about climate change? The hypocrisy is stunning." Several Māori commentators expressed frustration that cultural concerns were acknowledged but ultimately overridden.
The project reflects New Zealand's broader struggle to balance economic opportunities from the global tech boom against environmental commitments and Treaty of Waitangi obligations. As AI data centres proliferate worldwide, small nations like New Zealand face pressure to compete for investment—even when it conflicts with their values.
