Contact Energy and CDC Data Centres have announced a joint venture to explore building a massive 250-megawatt data centre in central Taranaki.
The proposed facility would be built near the site of Contact's recently retired Taranaki Combined Cycle (TCC) gas power plant in Stratford. To support the significant energy requirements, the developers plan to co-locate battery storage and draw electricity from Contact's pipeline of new renewable generation projects.
Contact chief executive Mike Fuge said the company intends to supply electricity under a long-term contract. Large-scale contracted demand helps underwrite investment in new wind, solar and geothermal generation instead of relying solely on existing power supplies.
"Our strategy is to lead New Zealand's renewable energy future. And, as part of that, we are playing our part in the economic regeneration of the regions," Fuge said.
He added that Stratford is an ideal location to explore a digital hub powered by renewable energy, which would help the local Taranaki economy thrive.
Construction of the facility would provide a major boost to regional employment. Peak construction jobs are expected to match the 600 workers seen during the build of Contact's Tauhara geothermal station. Once the data centre is operational, the site is expected to employ roughly four times as many skilled workers as the former gas plant.
Stratford already holds resource consent for 500 megawatts of grid-scale batteries and features an existing high-capacity grid connection. The location also offers terrestrial and subsea fibre connections linking directly to Auckland's international cables.
CDC Data Centres founder and chief executive Greg Boorer said digital infrastructure is becoming vital for national resilience and economic productivity.
"We see value in a project shaped by New Zealand's energy capability, significant local ownership and long-term regional participation," Boorer said.
Water consumption is often a major concern for communities hosting data centres, but CDC plans to explore a net zero-water-use cooling solution for the Stratford site. The company uses closed-loop cooling technology that recirculates water rather than drawing continuously from local town supplies. Rainwater collection and reuse will be factored into the bespoke design to keep operational water use exceptionally low.
At this stage, the project remains in the early planning phase. Activities are currently limited to securing resource consent, designing the site, and engaging with potential anchor tenants. Neither company has formally committed to construction, and development relies on securing final approvals and project finance.
Contact Energy's existing 200-megawatt generation assets in Stratford are not affected by the proposal. A separate joint venture between Contact and Lightsource bp is also progressing plans for a 150-megawatt solar farm with integrated battery storage near the same site.
