Digital.nz ← Back to platform

DIGITAL.NZ INTELLIGENCE · PROJECT TRACKER 02 HORIZONTAL WORKS

Datagrid
Makarewa

A living evidence file on the proposed hyperscale AI campus north of Invercargill—tracking the distance between a consented, active site and a fully financed, connected and contracted operating asset.

UPDATED 30 AUGUST 2026 NORTH MAKAREWA · SOUTHLAND PRE-FID / ACTIVE WORKS
49 ha OPERATOR-STATED
CAMPUS SITE
240 MW CONSENTED MAXIMUM
IT CAPACITY
140 MW MERCURY POWER
PURCHASE OPTION
NZ$53m MERCURY INVESTMENT
FOR 12.7%

CURRENT ASSESSMENT

A real project. Several decisive gates remain.

Makarewa has moved beyond a rendering: resource consents are granted, Stage 1 commencement documentation is public, HEB Construction is undertaking horizontal works, Mercury has invested, and the Tasman Ring suppliers have been contracted.

Those achievements materially reduce development risk. They do not yet establish a completed final investment decision, fully contracted customer demand, delivered grid connection, firm full-load electricity supply or an operating subsea cable.

A 30 August review found no later public announcement that closes the FID or customer gates. Horizontal works remain the latest evidenced project-stage change; the operator’s 2028 opening date remains a target dependent on capital, customers, power, grid and cable delivery.

The investment question is no longer “is there a project?” It is “which remaining dependencies convert this worksite into a bankable operating campus, and when?”

EVIDENCE GATES

What is confirmed—and what is not.

01 · SITE CONFIRMED

49-hectare Makarewa campus

The consented site is at 342 and 370 Flora Road East. The council record specifies six data halls, a substation and a cable landing station.

02 · CONSENT GRANTED

Three consenting authorities

Southland District Council, Environment Southland and Invercargill City Council granted the necessary resource consents in March 2026.

03 · EARLY WORKS ACTIVE

HEB undertaking horizontal works

Road access, earthworks and a six-metre screening bund have commenced. The operator targets the foundation platforms by the end of 2026.

04 · STRATEGIC EQUITY CLOSED

Mercury owns 12.7%

Mercury invested US$30m, reported as NZ$53m, and its chief executive joined the Datagrid NZ board.

05 · FID OPEN

Final investment decision pending

Mercury's July 2026 market announcement said FID was expected later in the year. No later public FID announcement was identified in the 30 August review, so this remains a central project gate.

06 · CUSTOMERS OPEN

Committed load not disclosed

No public source reviewed through 30 August establishes contracted hyperscale tenants or the capacity and term of customer commitments.

07 · POWER DELIVERY STAGED

140MW option, not full-load supply

The 15-year Mercury arrangement is a power purchase option and covers part of the various capacity figures published for the project.

08 · OPERATIONS TARGET

2028 remains a stated target

Opening depends on construction, grid commissioning, equipment, customers, capital and international connectivity arriving in sequence.

CAPACITY RECONCILIATION

240, 280 and 360 are not the same number.

CONSENT RECORD 240 MW

Maximum IT capacity

Southland District Council describes up to 240MW supporting AI training, data processing and storage across six halls.

OPERATOR POSITIONING 280 MW

Campus capacity

Datagrid's public website markets 280MW of hyperscale capacity across three modules. The basis may include facility definitions beyond consented IT load.

MERCURY ANNOUNCEMENT 360 MW

Project / electrical scale

Mercury's NZX announcement calls it a 360MW project. A 360MVA substation rating or project load should not be treated as equivalent to IT capacity.

Digital.nz preserves each source's terminology rather than forcing unlike measures into one figure. Investor models should distinguish IT load, total facility load, grid-connection rating, contracted electricity and phased delivered capacity.

DELIVERY DEPENDENCIES

The project stack.

Each layer must arrive at usable scale and timing. A strong result in one layer does not remove the delivery risk in another.

LAYER PUBLIC POSITION TIMING INTELLIGENCE INTERPRETATION
Site and earthworks

HEB Construction

In progress
Started Aug 2026
Visible physical progress; vertical build scope not yet evidenced
Resource consents

Data centre, GXP and cable landing

Granted
March 2026
Subject to conditions, monitoring and compliance
Strategic capital

Mercury minority equity

NZ$53m
July 2026
Validation and alignment; not evidence of full project financing
Electricity hedge

Mercury PPOA

140MW / 15 years
Signed March 2026
Option pathway covering part of proposed load
Grid connection

Dedicated GXP / long-lead equipment

360MVA stated
Late-2027 target reported
Commissioning and available generation remain critical
Tasman Ring Phase 1

Invercargill–Melbourne

2,300km
Contract announced July 2026
ASN supply and OMS survey/install contract; operating date still a delivery gate
Customer demand

AI, cloud and high-density compute

Not disclosed
Tracker cutoff
Contracted anchor load is central to financeability

WHAT TO WATCH NEXT

Signals that will change the risk profile.

01 Final investment decision

What capital stack, construction scope, phasing and conditions are approved—and what is excluded from the first committed phase?

02 Anchor customer contracts

Which counterparties commit capacity, for how long, at what ramp profile and with what credit support?

03 Firm electricity and new generation

When does the 140MW option become supply, how is remaining load covered, and what additional generation or flexibility is enabled?

04 Grid delivery

Does the dedicated connection reach commissioning on schedule, and what constraints apply to ramping toward operational load?

05 Tasman Ring milestones

Marine survey, manufacture, permits, installation, landing, testing and customer pre-sales should be tracked separately.

06 Vertical construction and equipment

Watch for data-hall contractors, long-lead electrical and cooling systems, GPU/customer equipment and module completion.

07 Consent compliance

Track monitoring of noise, emissions, water, wetlands, traffic and community liaison against published conditions.

08 Regional value

Separate temporary construction employment from permanent roles, local procurement, skills transfer and durable digital activity.

Important: Operator targets and projections are forward-looking. “Consented,” “contracted,” “optioned,” “under construction,” “commissioned” and “operating” describe different levels of completion. This tracker is independent market intelligence, not investment advice.

CORE SOURCES

Evidence behind the tracker.

Need the project
behind the headlines?

Digital.nz can prepare a source document review, dependency analysis, power and connectivity brief, regional land screen or continuously monitored project file.

Discuss a project brief