Datagrid recently acquired 43 hectares of ground in Makarewa on New Zealand’s south island. It is now becoming clear that New Zealand's first hyperscale data center will be carbon neutral and cost around a billion dollars to build.

According to the New Zealand Trade and Enterprise (NZTE) agency, Datagrid chose Southland because of its colder temperatures, which can reduce electricity consumption. By using electricity produced from the Manapouri hydropower scheme along with those natural climate benefits, the facility will become the first carbon-neutral facility in New Zealand.

The new data center will have a total capacity of 150 MW, making it the largest data center facility in the country. The majority of data centers in New Zealand are under 20MW.

A branch cable would also connect the Chatham Islands, as well as the Rocket Labs satellite-tracking station. The costs of building the facility will be covered in part by a recent investment made by the BW Group of Singapore.

"New Zealand has an opportunity to become the Iceland of the Southern Hemisphere and provide the world with green data processing and storage capabilities. The NZTE Investment team recognises this and is proud to support those already investing in the space and those who are looking to in the future," said Will Perriam of NZTE in a press release.

Photo credit: Eddie Bugajewski