Mercury signed a 140MW power purchase option agreement with Datagrid NZ in March, providing a pathway for the project’s renewable electricity supply.

The power generator and retailer’s chief executive, Stew Hamilton, has also been appointed a director of Datagrid NZ.

Hamilton 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’s executive general manager wholesale, Tim Thompson, said the investment would improve Mercury’s understanding of how large-scale artificial intelligence (AI) and data centre demand would develop in New Zealand.

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“It strengthens our position for future long-term offtake, and provides us with a closer link between future customer demand and renewable generation investment,” he said.

Datagrid NZ founder and chair Remi 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,” he said.

In March, Datagrid said it had won key stormwater, wetland removal, cable landing, earthworks and drainage consents for its proposed facility.

Datagrid NZ first hit headlines in 2020 when two of the firm’s key backers, rich-lister Malcolm Dick and French entrepreneur Remi Galasso, proposed the project.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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