Mercury takes US$30M stake in New Zealand data centre developer Datagrid
What's the deal? New Zealand energy company Mercury has invested US$30 million (NZ$53 million) for a 12.7% minority equity stake in DatagridDealroom has a profile for this one. Try Dealroom → Holding Group NZ, a developer of large-scale data centre infrastructure. The investment is funded from existing capital facilities.
Who's involved? Mercury generates electricity from 100% renewable sources — hydro, geothermal, and wind — and retails electricity, gas, broadband, and mobile services. Datagrid is building what it calls New Zealand's first AI factory: a hyperscale campus at North Makarewa, Southland, purpose-built for AI, sovereign cloud, and high-density computing.
Why now? The 360MW project holds resource consent, with a final investment decision expected by the end of 2026. Mercury signed a 140MW power purchase option agreement with Datagrid in March 2026, providing a pathway for the project's renewable electricity supply.
What's the endgame? Mercury wants long-duration demand from large electricity users to underpin its renewable generation pipeline. "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," said chief executive Stew Hamilton.
The hire: Hamilton has also joined Datagrid's board as a director, giving Mercury governance oversight of the project it is backing. Executive GM Wholesale Tim Thompson said the deal is "a staged investment with appropriate governance and downside protection."
What could go wrong? The final investment decision is still pending, and the stake is structured with downside protection — a sign Mercury is hedging against uncertainty around how AI and data centre demand develops in New Zealand.
The signal: The deal links renewable generation directly to emerging AI infrastructure demand, a pairing energy suppliers increasingly need as data centres compete for power. For Datagrid, the partnership is more than supply. "Partnering with a leading New Zealand green electricity generator like Mercury is a strategic step for us, not just an electricity supply arrangement," said founder and chair Rémi Galasso.
Read more: ListCorp
