New Zealand energy firm Mercury has invested in local data center company Datagrid.

The companies this week announced Mercury has invested NZ$53 million (US$30m) for a 12.7 percent stake in Datagrid. Mercury CEO Stewart Hamilton has been appointed a director of Datagrid.

“Investing in Datagrid NZ is aligned with our core strategy,” said Mercury CEO Hamilton. “We have a deep renewable development pipeline, and long-duration demand from large electricity users like Datagrid provides revenue certainty that helps us to keep investing in renewable electricity, which homes, businesses and communities will need in the future.”

Datagrid is developing a 280MW data center campus on a 78,000 sqm (840,000 sq ft) site in Invercargill on the country’s South Island. In planning since 2021, construction is set to start later this year.

Datagrid CEO, Rémi Galasso, added: “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 keep continue developing its vision for the #Southland project and begin horizontal construction works on the site.”

Mercury signed a 140MW power purchase option agreement with Datagrid in March 2026.

Founded in 1999, Mercury NZ is an electricity and gas utility that also provides broadband and mobile telephone services. Majority-owned by the state, it is the largest energy firm in New Zealand, operating nine hydro stations, five geothermal plants, and a number of wind farms.

Datagrid is also planning the Tasman Ring Network, a subsea cable system aimed at improving South Island connectivity and reducing reliance on North Island landing points. Plans for the Tasman Ring Network were announced in late 2024. The 6,000-km (3,728-mile) cable will connect Auckland, New Plymouth, Greymouth, and Invercargill in New Zealand to Sydney and Melbourne in Australia. The system is set to offer 540Tbps and go live in 2027.