New Zealand’s energy investment stretches from the grid to a data centre
Vector invested 512 million dollars in Auckland’s grid, while Mercury recycled as much as 66 per cent of earnings into renewable generation. Datagrid expects its AI data centre and power substation foundation complete by year-end.
Economics & Markets··Midday
Vector’s profit rose 55 per cent after 512 million dollars into Auckland
According to RNZ, Vector, the electricity distribution company for Auckland, reported that net profit for the year to June rose 55 per cent to 240.2 million dollars. The company says the jump largely reflects the first full year under the Commerce Commission's latest electricity distribution pricing reset. Underlying earnings rose 20 per cent to 482.2 million dollars and electricity revenue rose 18 per cent to 905 million dollars. Natural gas distribution revenue rose 2 per cent to 69 million dollars, while gas connections slipped 0.5 per cent. Vector invested a record 512 million dollars in the Auckland network during the year and connected more than 13,000 new homes and businesses. The final dividend rose to 13.5 cents per share. Chief executive Chris Blenkiron said a focus on customer outcomes, safety and operational performance had delivered a strong result.[1]
Mercury, the New Zealand electricity company, said operating earnings for the year to June rose 36 per cent from 786 million dollars to 1.07 billion dollars. The company passed 1 billion dollars for the first time and came in above its own guidance. Mercury attributes the result largely to strong inflows into the Waikato catchment, which lifted hydro generation 31 per cent on the year. Three new projects, a mix of geothermal expansion and new wind farms, began generating during the year. The company says 66 per cent of the year's operating earnings went back into new and existing renewable generation. The final dividend was 17 cents per share. Chief executive Stew Hamilton said the strong financial performance was converting into new generation and greater system resilience.[2]
Datagrid began foundations for its Southland data centre and substation
Singapore-based Datagrid said groundworks began on Tuesday at what it calls New Zealand's largest data centre project. The site is a 49-hectare plot at Makarewa, north of Invercargill. The work has been contracted to HEB Construction, a subsidiary of the international firm VINCI Construction. It covers a new access road connecting the campus to State Highway 98 and upgrades to existing roads. Topsoil excavated from the site will be used to build a 6 metre bund to keep construction noise away from the surrounding community. The foundation platform for the artificial intelligence data centre facility, the cable landing station and the power substation is expected to be finished by the end of the year. Datagrid's New Zealand chief executive Rémi Galasso said the timeline was ambitious.[3]
