Mercury NZ acquires minority stake in Datagrid NZ to support data centres with renewables

• Strengthens position alongside advanced, large-scale, digital infrastructure projects
• Datagrid NZ developing one of the nation’s most advanced large-scale data centre projects
• Deep renewable development pipeline and long-duration demand from large electricity users available

Mercury NZ (ASX:MCY) has invested US$30 million for a 12.7% minority equity stake in data centre developer Datagrid Holding Group NZ.

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The investment funded from existing capital facilities and within capital management settings, is set to strengthen Mercury’s position alongside one of New Zealand’s most advanced, large-scale, digital infrastructure projects while supporting long-term renewable electricity demand growth.

Datagrid NZ is developing what is expected to be New Zealand’s most advanced large-scale data centre project at North Makarewa, Southland.

The 360MW project holds resource consent and a final investment decision is expected to be made later this year. Mercury signed a 140MW power purchase option agreement with Datagrid in March 2026, providing a pathway for the project’s renewable electricity supply.

Mercury CE, Stew Hamilton, who has also been appointed as a director of Datagrid NZ, 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 program,” Mr Hamilton said.

“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 executive GM wholesale, Tim Thompson, said the investment would improve the company’s understanding of how large-scale AI and data centre demand will develop in New Zealand.

“It strengthens our position for future long-term offtake and provides us with a closer link between future customer demand and renewable generation investment. It is a staged investment with appropriate governance and downside protection.”

Earlier this month Mercury delivered a strong fourth quarter, with higher renewable generation and disciplined portfolio management supporting trading margin of NZ$390 million, up 33% on PCP.

The quarter reflected continued delivery across its renewable development and asset renewal programs, with major milestones achieved across Kaiwera Downs, Kaiwaikawe and the hydro refurbishment program.

Mr Hamilton said overall, this performance highlighted strong operational momentum and disciplined execution against strategic priorities.

MCY was steady at $5.65 with a Mkt cap of $8.051B prior to markets opening.

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