Hyperscale data centres and flickering power
New Zealand is grappling with the energy and water demands of proposed hyperscale AI data centers, which could significantly impact the national power grid. Experts warn that relying on intermittent wind and solar power to support these energy-intensive facilities may lead to grid instability.
Why it matters
The tension between the rapid growth of AI infrastructure and the limitations of renewable energy grids is a critical challenge for modern economic and environmental policy.
The water and energy demand of coming AI data centres in New Zealand is presently getting considerable attention.
The supply of cooling water for the centres is actually a distraction because it is just a matter of having suitable locations.
Singapore-based Datagrid’s AI data centre near Invercargill obtained consent for up to 600 cubic metres of groundwater per day for cooling purposes. This has since switched to rainwater supply.
In comparison, every day about 40 million cubic metres of cold water passes by any point on the Clutha River below Roxburgh. This could provide cooling for multiple AI data centres along the river, just as the Waikato River provides cooling water for the Huntly power station now.
The already-consented Datagrid AI data centre will by itself amount to more than 4% of the country’s electricity use.
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