Residents near Invercargill, New Zealand, are expressing significant concerns regarding the planned construction of the country's first AI datacentre by Singapore-based Datagrid. The project, which has received approval for a NZ$3.5 billion investment, has sparked calls for greater transparency from the company about its environmental impact, particularly regarding electricity and water consumption.

Project Overview
Datagrid's planned datacentre will occupy a 49-hectare site in Makarewa, just north of Invercargill, and is expected to begin construction this year, with operations slated to commence by 2028. The facility aims to serve global AI and cloud providers, offering services for AI training, processing, and data storage. Additionally, the company plans to establish a high-speed internet cable linking Invercargill to Australia.

Environmental Concerns
The datacentre is projected to become New Zealand's second-largest electricity consumer, utilizing approximately 280 megawatts, second only to the nearby Tiwai Point aluminium smelter. Residents and environmental advocates are worried about the potential for increased electricity bills and the environmental repercussions of such high resource consumption. Angus Dowell, an economic geographer, noted several "red flags" regarding the project's long-term economic benefits for the local community. He highlighted that while construction may provide temporary jobs, the datacentre is unlikely to offer substantial long-term employment opportunities.

Community Response
Local residents, represented by Kelly Blomfield, chair of the Southland Sustainable Resource coalition, feel sidelined in the decision-making process. Blomfield emphasized that the community has not been adequately informed about the project and expressed frustration over unsuccessful attempts to engage with Datagrid for more information. "We feel like we’ve had our region sold out from underneath us," she stated, reflecting the sentiment of many locals who fear the impact of the datacentre on their environment and livelihoods.

Government's Investment Strategy
The New Zealand government is actively seeking to attract foreign investment in datacentres and AI infrastructure, with an aim to secure NZ$25-30 billion in investments. Government agency Invest New Zealand markets the country as a "safe harbour" for such investments, citing its access to renewable energy, available land, and a cool climate as attractive features for datacentre operations.

Wrap-up
As construction plans for the AI datacentre move forward, the local community remains apprehensive about the project's implications for their environment and economy. Calls for transparency and dialogue between Datagrid and residents are likely to grow as the construction timeline progresses, reflecting a broader global debate over the impact of datacentres on local communities.

Sources
theguardian.com

@hoju-korean.com Editorial Team