Mercury to take a 12.7 percent stake in Datagrid NZDatagrid is planning to build a large data centre in North Makarewa, SouthlandDatagrid NZ remains majority owned by its Singapore-based parentOne of the country's biggest electricity companies has thrown its weight behind a firm planning to build a large data centre in Southland.Mercury has invested US$30 million (NZ$53m) for a 12.7 percent minority equity stake in Datagrid NZ.Announcing the investment, Mercury said Datagrid NZ was developing "what is expected to be New Zealand's most advanced large-scale data centre project".The 360 megawatt project has been slated for North Makarewa, Southland, and won resource consent from the region's councils earlier this year.It has support from the region's mayors, but has drawn concerns about the impact from water use.The 78,000 square metre data centre is expected to open in 2028, fuelled by the explosion in global demand for artificial intelligence.Datagrid NZ remains majority owned by its Singapore-based parent company.Mercury's investment came after it signed a 140 megawatt power purchase option agreement with Datagrid in March.Mercury chief executive Stew Hamilton, who was also appointed as a director for Datagrid NZ, said it was a disciplined investment by the company."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," Hamilton said.Mercury, which has a large pipeline of new renewable energy projects, including a wind farm in Southland, said the investment would support long-term renewable electricity demand growth."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," Hamilton said.Datagrid NZ founder and chair Rémi 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," Galasso said."Partnering with a leading New Zealand green electricity generator like Mercury is a strategic step for us, not just an electricity supply arrangement."