Mercury acquires minority stake in Datagrid NZ
23/07/2026 08:30 NZST, GENERAL
MERCURY ACQUIRES MINORITY STAKE IN DATAGRID NZ TO SUPPORT LONG-TERM RENEWABLE DEMAND GROWTH
Mercury NZ Limited (‘Mercury’) has invested US$30 million (NZ$53 million) for a 12.7% minority equity stake in Datagrid Holding Group NZ Ltd (‘Datagrid NZ’), strengthening its position alongside one of New Zealand's most advanced, large-scale, digital infrastructure projects and supporting long-term renewable electricity demand growth. The investment is funded from existing capital facilities and within capital management settings.
Datagrid NZ is developing what is expected to be New Zealand's most advanced large-scale data centre project at North Makarewa, Southland. The 360MW project holds resource consent and a final investment decision is expected to be made later this year. Mercury signed a 140MW power purchase option agreement with Datagrid in March 2026, providing a pathway for the project’s renewable electricity supply.
Mercury Chief Executive Stew Hamilton has also been appointed as a director of Datagrid NZ. He said it was a disciplined investment in a strategically important opportunity. “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.
“We have a deep renewable development pipeline, and 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.”
Mercury Executive GM Wholesale Tim Thompson said the investment would improve Mercury’s understanding of how large-scale AI and data centre demand will develop in New Zealand. “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.”
Datagrid NZ founder and chair Rémi Galasso said speed of delivery was crucial. “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.
“Thanks to this new partnership, Datagrid can continue developing its vision for the Southland project and begin horizontal construction works on the site.”
ENDS
Howard Thomas
General Counsel and Company Secretary
Mercury NZ Limited
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