But potential impacts of a large cable on the natural environment, such as disturbance to wildlife, have been highlighted in a commissioner’s report.
Datagrid announced this week it had gained full resource consent from the region’s councils, meaning it was one step closer to constructing a 78,000sq m AI factory in Makarewa.
Southland Mayor Rob Scott said the data centre had been on the cards for a while and was a good opportunity for the region.
His initial concerns centred on power, water and community impact, but he was pleased with how the company had accepted community feedback and would also collect rainwater.
"We don’t have an abundance of power down here, so that’s potentially one negative.
"But then if you look at the other side of that, the job creation and what it opens up, as long as there’s a net gain rather than a net loss and the power’s going to good use then that’s OK."
Invercargill Mayor Tom Campbell was very positive about the project, saying it was a great opportunity with no downsides.
He said a cable coming onshore at Ōreti Beach meant the city would have the fastest internet in the country, which could attract tech companies.
"I don’t think we’re talking about thousands of jobs or anything like that, but I think in the longer term we could see a few hundred jobs based in high tech industries, and well paid."
Potential issues with the undersea cable were detailed by Environment Southland independent commissioner Hugh Leersnyder in a consent application report.
Those included the placement of the cable potentially disturbing marine mammals, and conflict with Māori values.
The application noted human-induced underwater noise could cause behavioural and physiological issues, Mr Leersnyder said, but noise was expected to be localised and short-lived.
Trenching along the beach could impact cultural and spiritual values, lead to the discovery of cultural artefacts, and disturb toheroa, he wrote.
"I note that Te Ao Marama Inc’s cultural impact assessment identifies the cable impacts on mauri, mahinga kai, kaitiakitanga and rangatiratanga values, both in the open coast and Ōreti Beach areas."
The cable has an expected life span of 25 years, but the applicant has sought a 35-year consent.
Mr Leersnyder’s report covered a range of other issues too, including the removal of a 2400sq m wetland — which he deemed to have minor adverse environmental effects — air quality, and water.
Datagrid will take 7 litres per second from groundwater bores and discharge up to 5000L of treated wastewater on to land every day.
Local Democracy Reporting contacted Datagrid with questions, but founder and CEO Remi Glasso said some of those would be addressed in a press announcement next week.
The company said construction would create more than 1200 skilled and technical jobs.
Its Makarewa site is located about 15 minutes north of Invercargill.
• LDR is local body journalism co-funded by RNZ and NZ On Air.
