By Matthew Rosenberg, Local Democracy Reporter
Invercargill mayor Tom Campbell is standing by his view that a new cable for a large AI data factory will not impact the environment at Ōreti Beach, despite a report saying otherwise.
Last week, Datagrid announced it had gained consent from the region’s councils for a giant 78,000sqm data centre in Makarewa – about 15 minutes north of Invercargill.
The AI factory is set to become the second largest user of electricity in the country behind Tiwai Point aluminum smelter, and Campbell said the cable would give his city the fastest internet in the country.
In response to a Facebook question about environmental impact from the installation going through Ōreti Beach, Campbell said there would be “none at all”.
But that view appeared to be at odds with independent commissioner for Environment Southland Hugh Leersnyder, who raised a number of environmental impacts.
Mayor Campbell stood by his comment, saying the report did not point out any significant impact 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.
“The question is whether the impact is significant, and obviously it was judged not to be, because the consent was issued.”
Commissioner Leersnyder wrote in his resource consent decision report that key adverse effects of trenching included impact on cultural and spiritual values, potential discovery of a cultural artefact and disturbance of toheroa – a shellfish.
Leersnyder highlighted a risk of disturbance to marine mammals during underwater cable placement, especially whales and dolphins because of sound and vibration.
“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 disturbed, and benthic flora and fauna could be damaged or smothered, he wrote in the consent document.
Mana whenua representatives would be on hand to relocate any toheroa unearthed at the beach and Datagrid would notify local iwi in advance about digging for the shellfish along the planned cable route, the document noted.
Work would be suspended if marine mammals were within 500 metres during underwater cable laying, and equipment with emission levels of 210dB would be started gradually.
Datagrid would also attempt to avoid sensitive underwater habitats identified during planning and surveying.
The company said it had “maintained open lines of communication with the four Papatipu Rūnaka o Murihiku over many years”, the resource consent decision document showed.
Campbell said Datagrid intended to start earthworks in July.
LDR is local body journalism co-funded by RNZ and NZ On Air.

Mayor stands by comments over AI factory cable
17 Mar 2026
By Matthew Rosenberg, Local Democracy Reporter
Invercargill mayor Tom Campbell is standing by his view that a new cable for a large AI data factory will not impact the environment at Ōreti Beach, despite a report saying otherwise.
Last week, Datagrid announced it had gained consent from the region’s councils for a giant 78,000sqm data centre in Makarewa – about 15 minutes north of Invercargill.
The AI factory is set to become the second largest user of electricity in the country behind Tiwai Point aluminum smelter, and Campbell said the cable would give his city the fastest internet in the country.
In response to a Facebook question about environmental impact from the installation going through Ōreti Beach, Campbell said there would be “none at all”.
But that view appeared to be at odds with independent commissioner for Environment Southland Hugh Leersnyder, who raised a number of environmental impacts.
Mayor Campbell stood by his comment, saying the report did not point out any significant impact 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.
“The question is whether the impact is significant, and obviously it was judged not to be, because the consent was issued.”
Commissioner Leersnyder wrote in his resource consent decision report that key adverse effects of trenching included impact on cultural and spiritual values, potential discovery of a cultural artefact and disturbance of toheroa – a shellfish.
Leersnyder highlighted a risk of disturbance to marine mammals during underwater cable placement, especially whales and dolphins because of sound and vibration.
“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 disturbed, and benthic flora and fauna could be damaged or smothered, he wrote in the consent document.
Mana whenua representatives would be on hand to relocate any toheroa unearthed at the beach and Datagrid would notify local iwi in advance about digging for the shellfish along the planned cable route, the document noted.
Work would be suspended if marine mammals were within 500 metres during underwater cable laying, and equipment with emission levels of 210dB would be started gradually.
Datagrid would also attempt to avoid sensitive underwater habitats identified during planning and surveying.
The company said it had “maintained open lines of communication with the four Papatipu Rūnaka o Murihiku over many years”, the resource consent decision document showed.
Campbell said Datagrid intended to start earthworks in July.
LDR is local body journalism co-funded by RNZ and NZ On Air.
print this story
Related Topics: Energy
Energy
More >Māui closure notice narrows the buffer
Today 11:45am
OMV New Zealand's notification that the Māui gas field will cease production by the end of 2026 has brought forward risks the industry had expected to emerge more gradually.
Paddocks to power: The rise of small-scale solar farms
Fri 1 May 2026
By David Hill, Local Democracy Reporter | A new, small-scale solar farm has been lit in North Canterbury.
Govt missing tricks to save fuel in crisis
Thu 30 Apr 2026
By Shannon Morris-Williams | The Government is being urged to shift its response to the fuel crisis away from short-term relief and towards measures that reduce demand, with public health experts warning it is missing an opportunity to boost energy security and lower household costs.
Energy uncertainty holding back investment – report
Thu 30 Apr 2026
By Shannon Morris-Williams | Uncertainty around energy costs and supply is delaying investment decisions for New Zealand businesses, with new research showing firms would ramp up spending on growth, workforce capability and electrification if conditions were more stable.
Announcements expected soon on $200M gas fund
24 Apr 2026
By Pattrick Smellie | Fossil fuel companies appear likely to take up a $200 million government fund to encourage additional oil and gas exploration, dashing lobbyist Business New Zealand’s hopes that it might be repurposed to underwrite industrial electrification.
Going concern status flags depth of Methanex NZ's gas crisis
21 Apr 2026
Methanex's New Zealand operation is relying on financial support from its Canadian parent to remain a going concern after a second consecutive year of asset impairments left the business with negative equity.
Diesel crunch exposes fuel vulnerability
20 Apr 2026
By Shannon Morris-Williams | Rising diesel prices and tightening supply are exposing New Zealand’s heavy reliance on fossil fuels, with experts warning the squeeze on farming and forestry is likely to ripple through the economy while strengthening the case for lower-emissions energy alternatives.
Marlborough’s Rānui Solar Farm enters final testing
16 Apr 2026
By Shannon Morris-Williams | Marlborough's biggest solar farm has entered its final testing phase and is now generating up to 9.9MW of electricity, marking a key milestone for a project expected to boost regional energy security.
Pūkaki consent battle becomes proxy for system risk
14 Apr 2026
The fight over Lake Pūkaki is no longer just about a consent change. It has become a proxy for how much New Zealand is willing to pay for electricity system resilience – and how that price should be set.
Global uncertainty driving solar surge
13 Apr 2026
By Shannon Morris-Williams | Global instability and rising energy costs are pushing more New Zealanders towards solar, with companies reporting a surge in enquiries as households look for greater control and resilience in an increasingly uncertain energy landscape.