Around the world, the boom in artificial intelligence is driving a parallel race between major tech companies to secure the physical infrastructure that enables it.

This race has now reached New Zealand, with Singapore-based Datagrid rolling ahead with plans to open the country’s first “AI factory” near Invercargill.

The scale of this major data centre, designed to power energy-hungry global AI systems, is substantial – both in its 78,000 square-metre size and its multi-billion-dollar cost.

It is not the only major investment by global players. Just last year, Amazon Web Services announced plans for a large new cluster of data centres in Auckland, billed as a NZ$7.5 billion investment in New Zealand’s digital infrastructure.

For smaller countries such as New Zealand, projects like these are often presented as wins – bringing jobs, investment and a pathway into the global AI economy.