Contact Energy reported an increase in annual profits and announced plans to explore a large-scale data centre in Taranaki.
The move signals a strategic shift for the utility provider as it leverages renewable energy growth to attract high-power industrial tenants. This expansion comes amid a global surge in demand for data processing infrastructure driven by artificial intelligence.
The company reported that its EBITDA rose 31% to $1,011 million [1]. Other financial metrics showed a statutory annual profit increase of 28% [2]. Company officials said these gains were driven by the acquisition of Manawa Energy and an increase in renewable generation output [3].
As part of its growth strategy, Contact Energy is partnering with CDC Data Centres. The two companies are exploring the development of a data centre in Stratford, Taranaki, with a proposed capacity of 250 MW [4].
The partnership aims to utilize the region's energy infrastructure to support the power requirements of modern data hubs. By integrating generation and consumption in the same region, the company can optimize its grid usage, a critical factor for large-scale digital infrastructure.
Contact Energy has focused on expanding its renewable portfolio to meet these needs. The integration of Manawa Energy has provided the necessary scale to pursue these capital-intensive projects [3].
“EBITDA rose 31% to $1,011 million”
This development highlights a growing trend where energy utilities evolve into infrastructure partners for the tech sector. By pairing renewable energy generation with data centre hosting, Contact Energy is attempting to lock in long-term, high-volume energy contracts while diversifying its revenue streams beyond traditional electricity retail.
