Mercury Invests US$30 Million in Datagrid’s Renewable AI Data Centre
Mercury NZ invests US$30 million for a minority stake in Datagrid NZ, aligning with its strategy to power long-term renewable demand from large-scale digital infrastructure projects.
- US$30 million investment for 12.7% stake in Datagrid NZ
- Supports 360MW AI data centre project in Southland
- 140MW power purchase option secured with Datagrid
- Mercury CEO Stew Hamilton joins Datagrid board
- Investment funded from existing capital facilities
Strategic Minority Stake in Southland AI Data Centre
Mercury NZ Limited (NZX:MCY, ASX:MCY) has taken a significant step to cement its role in New Zealand’s burgeoning renewable energy landscape by acquiring a 12.7% minority equity stake in Datagrid Holding Group NZ Ltd for US$30 million (NZ$53 million). This move places Mercury alongside one of the country’s most ambitious digital infrastructure projects, a 360MW hyperscale data centre in North Makarewa, Southland, designed specifically for advanced AI and high-density computing workloads.
Power Purchase Option and Board Appointment Strengthen Ties
Earlier this year, Mercury signed a 140MW power purchase option (PPO) agreement with Datagrid, providing a critical renewable electricity supply pathway for the project. The recent equity investment and the appointment of Mercury’s CEO Stew Hamilton to Datagrid’s board deepen this partnership, signalling Mercury’s intent to integrate long-duration electricity demand from large industrial users with its renewable generation pipeline.
Backing Renewable Demand Growth with Capital Discipline
Mercury emphasised that the US$30 million investment is funded from existing capital facilities and remains within the company’s capital management framework, preserving balance sheet strength. CEO Hamilton described the investment as "disciplined" and strategically aligned with Mercury’s core objective to secure revenue certainty through long-term demand contracts, which underpin its ongoing renewable generation developments. This approach complements Mercury’s recent upward revision of its FY2026 EBITDAF guidance, reflecting stronger renewables output and disciplined portfolio management.
Datagrid’s Race to Market and Construction Kickoff
Datagrid NZ founder and chair Rémi Galasso highlighted the urgency of advancing the project, noting that closing this investment round enables the commencement of horizontal construction works on site. With resource consents already secured, the final investment decision is expected later this year, a milestone that will clarify the project's scale and timing. The partnership with Mercury is more than an electricity supply deal, it’s a strategic alliance aimed at accelerating New Zealand’s position in the global AI infrastructure arena.
Bridging Customer Demand and Renewable Generation
Mercury’s Executive GM Wholesale, Tim Thompson, pointed to the investment’s value in enhancing the company’s insight into large-scale AI and data centre electricity demand trends. This closer alignment between future customer needs and renewable generation investment could shape Mercury’s capital allocation and generation portfolio decisions in the years ahead, reinforcing the company’s role as a green energy enabler for emerging high-demand sectors.
Bottom Line?
Mercury’s stake in Datagrid NZ positions it to capture emerging renewable demand from AI infrastructure, but the final investment decision later this year will be pivotal for the project's trajectory.
Questions in the middle?
- Will Datagrid NZ’s final investment decision proceed as scheduled later this year?
- How will Mercury’s renewable generation pipeline adjust to meet the evolving demand profile of AI data centres?
- What impact will this partnership have on Southland’s local economy and energy infrastructure?
