Potential Data Centre

Status
Concept phase: independent technical studies underway

Location
Stratford
Taranaki

Max Capacity
250 MW IT Load (estimate)

Contact Energy’s vision is to lead the renewable energy future for New Zealand and contribute to the economic regeneration of the regions.

As part of this, we are working with CDC to explore the potential to build a 250-megawatt (MW) data centre in Stratford, Taranaki.

With the retirement of Contact’s gas-fired TCC plant, we’ve been exploring how we maximise the potential of that site alongside our 500MW of grid-scale batteries already consented, our proposed solar farm, and the existing grid connection.

Right now, we are in the concept phase. We are currently undertaking a series of technical assessments to gain a complete understanding of the potential impacts and benefits of a data centre in Stratford.

Why we are exploring a data centre

Today’s world runs on data. Compared to other countries, including Australia, New Zealand has a small amount of domestic data centre capacity. We still rely on offshore providers for many of the services we all use daily, including AI. Many data centres are in countries that do not have our advantages: cooler temperatures and a high ratio of renewable energy. They burn through water and fossil fuels in a way we don’t need to.

We are working at pace as there is fierce global competition for data centre opportunities. The Nordic countries (think Norway and Finland) in particular share similar attributes to us and have created a foundation for data centre development that is commercially sound and environmentally durable. We believe New Zealand can match them.

How it works

From our perspective, a large data centre provides long-term, predictable demand for electricity. That demand helps underpin investment in new solar, wind and geothermal power stations and spreads the cost of the lines’ infrastructure that transports the energy they need.

For any large data centre project to proceed, we have four bottom lines:

• Pay a fair price for power.
• Be socially responsible, contribute to the community; be a good neighbour.
• Be environmentally responsible.
• Bring additional security and stability to the grid.

Why Stratford is a logical location

With the retirement of our gas-fired TCC plant, we’ve been exploring how we maximise the potential of that site alongside our planned solar farm.

Stratford could be an ideal location for a combined renewable energy / digital hub for several key reasons:

• We have a long-standing relationship with the community and local iwi.
• The supporting infrastructure is already in place – there is an existing electricity grid. connection point, along with nearby fibre cable connections to Auckland.
• The climate is cool for most of the year and will therefore allow free air cooling for most of the year.
• Rainfall is high, meaning rainwater harvesting will likely meet all our data centre water needs.
• Taranaki has a skilled workforce and as a region is at the forefront of the energy transition.
• Taranaki has built big infrastructure in the past and can do it again.

The benefits

This investment creates work for New Zealand businesses, contractors and suppliers, while strengthening the country's electricity system. The benefits go beyond the data centre itself.

• Energy security: More investment in generation helps improve energy security.
• Electrification: Supports the electrification of industry and transport.
• Economic: Contributes to a more productive and competitive economy. Construction jobs would be around the same level as Tauhara with more than 600 jobs at its peak. Once operational, we expect around four to six times as many skilled workers would be on site compared to the former TCC.
• Digital capability: the upgrade of New Zealand’s digital infrastructure and capability – connectivity, speed, fibre, resilience, and bandwidth.
• Dairy and data: Opportunity for Stratford and Taranaki to lead and be known as the world’s cleanest producers of both dairy and data.

About our partnership with CDC

We are exploring a data centre with CDC for several reasons:

• CDC’s New Zealand data centres are Toitū Net Carbon Zero certified, and Toitū Enviromark Diamond certified. Diamond is the highest level within. The Toitū Enviromark programme and recognises organisations that have embedded environmental management into the way they operate, make decisions and drive continual improvement.
• CDC data centres are designed to minimise or eliminate reliance on local water resources. Its fully closed-loop cooling technology recirculates the same water through the facility. This keeps operational water use exceptionally low.
• The loudest part of a data centre is usually the outdoor cooling plant. With well-engineered acoustic design, such as acoustic barriers, enclosures and silencers, CDC can reduce cooling noise beyond the property boundary to around 40 decibels.
• Data centres use a lot of energy. If this data centre goes ahead, it would give us the demand certainty to finance and build more of our consented energy projects across geothermal, wind, solar and grid-scale battery, adding security and stability to New Zealand’s energy system.

What happens next

Over the coming weeks, we will complete the technical assessments that will give us a solid understanding of the potential impacts and benefits. We are also completing further work on the economic benefits for Stratford, Taranaki and New Zealand. We expect to have a much clearer picture by the end of September.

In the meantime, we will continue talking with iwi, councils, neighbouring landowners and the wider community, and sharing more information as it becomes available.

If you have any questions, please email

• Contact: [email protected]
• CDC: [email protected]