Datagrid pledged Tuesday to reduce planned water use by 70% for its proposed AI factory in Southland, New Zealand [1, 2].
The commitment aims to lower the environmental footprint of the massive infrastructure project. As artificial intelligence demands more energy and cooling, the scale of such facilities often creates tension with local resource management and sustainability goals.
During a meeting in Invercargill, the company announced the reductions for the site located at Makarewa [1]. In addition to the water cuts, Datagrid said it will reduce backup generator requirements by more than 50% [3].
The project represents a $5 billion investment in the region [1]. By scaling back the reliance on generators and water, the company seeks to mitigate the industrial impact on the Southland environment.
The move comes as the company continues to develop the site. The reduction in generator needs suggests a shift in how the facility will handle power redundancy, a critical component for data centers that cannot afford downtime.
Datagrid has not yet provided a specific timeline for when these revised environmental targets will be fully implemented at the Makarewa site. The company continues to coordinate with local officials to ensure the facility meets regional standards.
“Datagrid pledged Tuesday to reduce planned water use by 70%”
This shift reflects a growing trend where AI infrastructure developers must negotiate environmental concessions to gain local approval. By significantly lowering water and generator requirements, Datagrid is attempting to address the primary criticisms of data center expansion—resource depletion and carbon emissions from backup power—while maintaining the scale of its $5 billion investment.
