Datagrid begins ‘horizontal construction’ in Southland, partnering with French giant HEB

Datagrid has begun construction on a large-scale data center in Southland, New Zealand, in partnership with HEB Construction. The project, which aims to support AI infrastructure, has faced local opposition but continues to secure key utility and investment deals.
Why it matters
The project represents a significant investment in AI-ready infrastructure and highlights the tension between industrial development and local community concerns.
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HEB has begun earthworks at Datagrid's Southland "AI factory". Photo / Datagrid
Datagrid has broken ground on what it hopes will become a 78,000sq m data centre on a 42ha site at Makarewa, about 15 minutes’ drive north of Invercargill.
The “AI [artificial intelligence] factory” maker said it has partnered with HEB Construction New Zealand on the earthworks. HEB is a 100%-owned subsidiary of French multinational Vinci, which reported New Zealand revenue of $1 billion for the year to June 30.
HEB has worked on some of New Zealand’s largest infrastructure projects, including Transmission Gully.
“We are proud to be working with Datagrid to bring lasting economic and community benefit to the region,” said HEB chief executive Mark Evans said.
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