A $10 billion AI data centre, planned by North Rakaia Ltd and Taiwan’s Mobii Green Energy, is set to transform a dairy farm in Rakaia, New Zealand, though doubts remain about its feasibility.
A plan to build a $10 billion AI data centre on a dairy farm in Rakaia, Canterbury, New Zealand, has sparked both intrigue and skepticism. North Rakaia Ltd, a local group, is collaborating with Taiwan-based Mobii Green Energy on the ambitious project, which aims to service AI operations across the South Pacific. The announcement was made on October 11, highlighting plans to make the facility operational by the end of 2025.
The AI data centre, proposed to run entirely on renewable energy, would reportedly be the first of its kind powered by green hydrogen. North Rakaia Ltd has taken the lead in securing the necessary renewable energy resources, including a 450MW solar farm at Rakaia. Another data centre, slated for development near Lake Benmore in southern Canterbury, will use solar and wind farms to provide an additional 700MW capacity.
Despite the grand vision, doubts linger over the project’s viability. North Rakaia, owned by New Zealand citizens Yali Li and James Gu, operates a milk powder factory and holds significant property assets, but neither company director has substantial experience in computing or renewable energy sectors. Mobii Green Energy, the Taiwanese partner, has claimed to possess breakthrough hydrogen technology, but there is little evidence or clarity about its application.
The farm in Rakaia, purchased for approximately $18 million in 2022, was initially intended for a solar-powered innovation hub called Kilvarock Solar Village, but the project fell through after government officials raised concerns about financing. North Rakaia’s co-operation agreement with Mobii Green Energy reportedly includes an investment of $40 million to secure exclusive collaboration rights in New Zealand.
If the data centre materializes, it would involve massive infrastructure investments, including NVIDIA H100 servers and hydrogen-powered facilities, with costs potentially surpassing $10 billion. The initiative also faces logistical challenges, such as securing undersea fiber links to connect with Sydney and Malaysia.
With the project not chosen for New Zealand’s fast-track consenting process, concerns persist about its financial and technical feasibility. However, proponents argue the data centres would position Canterbury as a green technology hub, potentially generating significant revenue and reducing global carbon emissions.
