‘Huge advantage here’: Datagrid pledges less water, generator use at Southland AI factory

Datagrid has announced a reduced environmental footprint for its upcoming AI data center in Southland, New Zealand, pledging to use significantly less water and backup power. While the company highlights the site's sustainability, local residents remain concerned about the project's long-term environmental and infrastructure impacts.
Why it matters
As AI infrastructure expands globally, balancing the massive resource demands of data centers with local environmental and community concerns is becoming a critical challenge for developers.
Datagrid has unveiled a smaller resources footprint for its 49 hectare AI factory in Southland, as machines start work preparing the Makarewa site. At a meeting in Invercargill on Tuesday, the company told business leaders it had slashed its planned water use by 70% and more than halved its backup generator requirements. The discussion organised by the Southland Business Chamber drew more than 100 locals eager for details on the economic and environmental impacts. Datagrid chief executive Rémi Galasso said Southland's cool temperatures offered massive potential for a sustainable digital future. "This is going to be the most sustainable data centre in the whole Asia Pacific," he said. "Any other location in Sydney, in Jakarta, in Singapore will use more water, more electricity for the cooling. We have a huge advantage here in Southland."
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