AUCKLAND: In a move that signals growing convergence between renewable energy and artificial intelligence infrastructure, Mercury NZ Limited has acquired a 12.7% minority stake in Datagrid Holding Group NZ Ltd for US$30 million (NZ$53 million), a statement said.
The investment positions Mercury alongside one of New Zealand’s most ambitious digital infrastructure projects—a 360MW hyperscale data centre campus at North Makarewa, Southland, poised to become the country’s first dedicated “AI factory.”
Powering the AI Revolution
The partnership isn’t just about equity. Mercury signed a 140MW power purchase option agreement with Datagrid in March 2026, creating a clear pathway for renewable electricity to fuel the massive computing demands of next-generation AI workloads.
Mercury Chief Executive Stew Hamilton, who has joined Datagrid’s board as a director, framed the investment as both disciplined and strategically vital.
“Investing in Datagrid NZ is aligned with our core strategy, bolsters our position alongside an important emerging source of long-term electricity demand, and is structured to preserve balance sheet strength and flexibility for our wider capital programme,” Hamilton said.
A Pipeline Meets a Need
With Mercury’s deep portfolio of 100% renewable generation—hydro, geothermal, and wind—the partnership addresses a critical challenge: how to match intermittent renewable supply with the relentless, round-the-clock power requirements of hyperscale computing.
“Long-duration demand from large electricity users like Datagrid NZ provides us with the revenue certainty that underpins our investments in new renewable generation developments,” Hamilton added.
Inside the Deal
Executive GM Wholesale Tim Thompson noted that the investment delivers more than financial returns:
“It strengthens our position for future long-term offtake, and provides us with a closer link between future customer demand and renewable generation investment. It is a staged investment with appropriate governance and downside protection.”
The deal is funded from Mercury’s existing capital facilities and remains within its capital management settings.
Speed to Market
For Datagrid founder and chair Remi Galasso, the partnership is about momentum.
“Time to market is driving our strategy, and closing this round of investment funding allows us to move decisively. Partnering with a leading New Zealand green electricity generator like Mercury is a strategic step for us, not just an electricity supply arrangement.”
Galasso confirmed that horizontal construction works at the Southland site are now set to begin, as the project awaits a final investment decision expected later this year.
The Datagrid campus is being purpose-built for advanced AI, sovereign cloud, and high-density computing workloads—positioning New Zealand as a potential hub for AI infrastructure in the Asia-Pacific region.
For Mercury, the investment offers a front-row seat to understanding how large-scale AI and data centre demand will evolve domestically, while securing a foothold in what could become a major new category of electricity consumption.
Mercury generates electricity from 100% renewable sources: hydro, geothermal, and wind. The company also retails electricity, gas, broadband, and mobile services. Listed on the NZX and ASX under ticker “MCY,” Mercury maintains a legislated minimum 51% shareholding by the New Zealand Government.
Datagrid New Zealand (datagrid.nz) is developing New Zealand’s first AI factory—a hyperscale data centre campus in Makarewa, Southland, purpose-built for advanced AI, sovereign cloud, and high-density computing workloads.
