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American Focus > Blog > World News > Invercargill mayor stands by comments over AI data centre cable
World News

Invercargill mayor stands by comments over AI data centre cable

Last updated: March 16, 2026 6:15 pm
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Invercargill Mayor Tom Campbell remains firm in his belief that the installation of a new cable for a large AI data facility will not harm the environment at ÅŒreti Beach, even though a report suggests otherwise.

Recently, Datagrid announced that it had secured approval from regional councils to construct a massive 78,000sqm data centre in Makarewa, approximately 15 minutes north of Invercargill.

The “AI factory” is poised to become the second-largest consumer of electricity in the nation, trailing only the Tiwai Point aluminium smelter. Campbell noted that the cable installation would provide his city with the fastest internet in the country.

In response to a query on Facebook about the environmental impact of the cable installation at ÅŒreti Beach, Campbell asserted there would be “none at all.”

However, this stance contrasts with the concerns raised by independent commissioner for Environment Southland, Hugh Leersnyder, who identified several environmental impacts.

Campbell defended his statement, arguing that the report did not indicate any substantial negative effect on the beach.

“Well if I put a spade in my garden, I’m probably halving a worm in two. There’s no such thing as any kind of development that doesn’t have any kind of impact,” he said.

“The question is whether the impact is significant, and obviously it was judged not to be, because the consent was issued.”

Commissioner Leersnyder’s resource consent decision report outlined major adverse effects of trenching, including impacts on cultural and spiritual values, potential discovery of cultural artefacts, and disturbance of toheroa, a type of shellfish.

Leersnyder also highlighted the potential disturbance to marine mammals during underwater cable placement due to sound and vibration, particularly affecting whales and dolphins.

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“The application notes that human-induced underwater noise may cause behavioural disturbance and physiological injury. Any noise effects are expected to be very localised and short-lived.”

The seabed would be disrupted, potentially damaging or smothering benthic flora and fauna, according to the consent document.

Mana whenua representatives would oversee the relocation of any toheroa uncovered at the beach, and Datagrid would inform local iwi in advance about any digging along the proposed cable route, as noted in the document.

Work would halt if marine mammals were detected within 500 meters during underwater cable placement, and equipment with emission levels of 210dB would be activated gradually.

Datagrid also plans to avoid sensitive underwater habitats identified during planning and surveying.

The company maintained it had “open lines of communication with the four Papatipu RÅ«naka o Murihiku over many years,” as reflected in the resource consent decision document.

Campbell stated that Datagrid plans to begin earthworks in July.

LDR is local body journalism co-funded by RNZ and NZ On Air.

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