| Decision | Consent granted Section 12(1)(a) Overseas Investment Act 2005 Section 13(1)(b) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 23 December 2021 |
| Pathway(s) | Benefit to New Zealand (significant and identifiable) Significant business assets |
| Investment | Acquisition of freehold interest in approximately 42.8167 hectares of sensitive land located at 370 Flora Road East/Taylors Road, Makarewa (the Land) for the establishment of a hyperscale data centre (the Datagrid). |
| Consideration | $1,800,000 for the Land Over $1 billion for establishing the Datagrid |
| Applicant | Datagrid New Zealand Limited Partnership (France 62.5%; Austria 37.5%) |
| Vendor | Makarios Limited (New Zealand 100%) |
| Background | The Applicant is a New Zealand limited partnership established for the purpose of the Investment. The Applicant is seeking to consent to acquire the Land and to establish the Datagrid, which is expected to be New Zealand’s first hyperscale data centre. The construction of the Datagrid is likely to result in the introduction of over $1 billion additional investment into New Zealand. The Datagrid is expected to create job opportunities for New Zealanders, both during the construction phase of the Datagrid and the operational phase. The location for the investment in New Zealand has been selected as it is likely to mitigate the consumption of electricity due to its lower temperatures and can provide access to reliable, green electricity. The investment is also subject to resource and building consents to construct the Datagrid. As the Applicant does not currently operate in New Zealand’s data centre market, this Investment is likely to increase market competition and will lead to greater efficiency for clients of the Datagrid due to its scale. The OIO is satisfied that the regulations requiring farm land to be offered for acquisition on the open market have been complied with. |
| More information | Pavanie Edirisuriya DLA Piper New Zealand Level 15, PwC Tower 15 Customs Street West Auckland 1010 |
See the attached Assessment Report linked below, which was published in response to an Official Information Act request:
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