Southland: Future Electricity Exporter with Data Centers and Hydrogen Plant
Key Ideas
  • Southland, New Zealand, is set to become a net exporter of electricity despite planned data centers, hydrogen production facility, and a renewed power deal with the Tiwai Point aluminum smelter.
  • Datagrid, T4, and Southland Southern Green Hydrogen (SGH) are establishing facilities in the region, with plans for a large green hydrogen facility that will export green ammonia to Asia.
  • The region's electricity demand is expected to grow significantly in the next decade, with investments in wind projects, data centers, and hydrogen production to meet the growing needs sustainably.
  • The development of renewable energy projects in Southland aims to not only meet local needs but also supply other regions in New Zealand, showcasing the region's vast potential for renewable energy generation.
Southland, New Zealand, is gearing up to be an exporter of electricity despite multiple upcoming projects that will increase power consumption in the region. Datagrid, T4, and Southland Southern Green Hydrogen (SGH) are set to establish facilities in Invercargill. Datagrid plans to build a data center at Makarewa, while SGH aims to develop one of the world's largest green hydrogen facilities. Additionally, T4 has proposed a data center on the outskirts of Invercargill. Chami Abeysinghe, the chief executive of the Great South regional development agency, highlighted the progress of the hydrogen plant and the region's potential to meet increasing electricity demands sustainably. With an expected rise in electricity demand to 1500MW by 2035, Southland is advancing its renewable energy projects, including wind farms and data centers. Notably, investments in wind projects like the Kaiwera Downs wind farm expansion by Mercury Energy and plans for new wind farms by Contact Energy, Pioneer Energy, and Manawa Energy are underway. These projects aim to support the growing industrial and residential demand for electricity, including the needs of the hydrogen plant. T4's chief executive, Dean Addie, emphasized the company's commitment to green energy and sustainable development. The data center's plan includes utilizing solar power to reduce grid reliance and exploring ways to repurpose generated heat for community benefit. Southland's competitive advantage in the Asia-Pacific market, attributed to its cooler climate, positions it as a favorable location for energy-intensive operations. The region's ambitious plans for electricity generation, such as Datagrid's Makarewa data center park, aim to draw significant power supply for future growth and attract international investments. Transpower's grid development initiatives in collaboration with local partners underscore the commitment to enhancing electricity infrastructure in Southland to support the region's evolving energy landscape. The Tiwai Point smelter's decision to remain operational provides additional certainty for future electricity demand projections and long-term investment strategies in the region.
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