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
Today 11:00am
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 >Oil shock tests Government’s balancing act
Today 11:00am
The Government is trying to show it is on top of fuel security risk without giving the impression New Zealand is heading for a shortage.
'Power-hungry' AI data centre could push up electricity prices
Mon 16 Mar 2026
By Shannon Morris-Williams | A proposed AI-focused data centre in Southland could become New Zealand’s second-largest electricity user, raising concerns it may drive up power prices and complicate efforts to decarbonise the national grid.
Renewables surge cuts power emissions, but oil dominates fossil fuel use
Fri 13 Mar 2026
By Shannon Morris-Williams | New Zealand’s fossil fuel emissions fell in 2025 as strong renewable electricity generation reduced the need for gas-fired power, but oil consumption is rising and now accounts for a record share of fossil emissions.
Todd gets nod to drill first super-critical geothermal well
Thu 12 Mar 2026
By Pattrick Smellie | Todd Energy is to make its sole oil drilling rig available to drill the first exploration well under the government’s $60 million super-critical geothermal resource exploration programme under a ‘preferred supplier’ agreement announced yesterday.
Japan eyes New Zealand as green hydrogen export hub
Thu 12 Mar 2026
By Shannon Morris-Williams | A new partnership between major Japanese companies aims to explore exporting green hydrogen from New Zealand – but the economics of producing the energy-hungry fuel remain the biggest hurdle.
Methanex: a gauge of NZ’s gas decline
Thu 12 Mar 2026
Methanex’s latest earnings call offered a blunt reminder that the company’s shrinking New Zealand business is now less a stand-alone corporate story than a barometer of the country’s broader gas decline.
Upton on LNG: don’t make electricity consumers subsidise industrial gas
Wed 11 Mar 2026
By Pattrick Smellie | Industrial gas users will be subsidised by electricity consumers unless they are also charged for access to the proposed liquefied natural gas (LNG) import facility, the Parliamentary Commissioner for the Environment, Simon Upton, says.
If the government is set on an LNG terminal, gas users, not electricity users, should pay
Wed 11 Mar 2026
By Christina Hood | COMMENT: It's increasingly clear that the government's narrative of LNG as ‘dry year electricity insurance’ really doesn't stack up.
Hormuz crisis critical to New Zealand
10 Mar 2026
By Nathan Surendran | COMMENT: Why the Hormuz crisis is a symptom, not the disease – and what it means for New Zealand.