Contact & CDC explore 250 MW Stratford data centre

Contact Energy and CDC Data Centres are exploring a potential data centre development in Stratford, Taranaki. The companies plan to seek resource consent for a 250 MW facility near Contact's retired Taranaki Combined Cycle power plant.

The proposed site would also include co-located battery storage, with electricity supplied under a long-term contract backed by Contact's pipeline of geothermal, wind and solar generation options. The former gas plant was retired earlier this year at the end of its operating life.

Under the plan, the data centre would have an IT load of 250 MW and a total load of about 350 MW at peak times, subject to final design. Large-scale, long-term contracted demand can support investment in new renewable generation and batteries rather than relying on existing electricity supply, Contact said.

Stratford has emerged as a candidate location because it already has a grid connection and consent for 500 MW of grid-scale batteries, with only minor substation works required. The area also has access to high-capacity fibre links, both terrestrial and subsea, connecting to Auckland, where New Zealand's international fibre cables land.

Separately, Contact's joint venture with Lightsource bp is progressing an option for a 150 MWac solar farm with integrated battery storage near the site. That proposal remains subject to consent, financing and final investment decisions.

Contact Chief Executive Officer Mike Fuge said the project would rely on new electricity generation rather than existing output.

"It is our intention that electricity for the proposed facility would be supplied under long-term contract, supported by new generation from Contact's 11 TWh pipeline of geothermal, wind and solar development options," Fuge said.

He linked the proposal to the company's wider strategy and its role in Taranaki.

"Our strategy is to lead New Zealand's renewable energy future. And, as part of that, we are playing our part in the economic regeneration of the regions," Fuge said.

"We believe Stratford shapes as an ideal location to explore a digital hub powered by renewable energy, from where the local Taranaki economy can thrive and the wider energy system and New Zealand can benefit," he said.

Jobs and design

Peak construction employment is expected to be comparable to Contact's Tauhara geothermal power station project, which supported more than 600 jobs in Taupō at its peak. Once operational, the proposed data centre is expected to have about four times as many skilled workers on site as the former Taranaki Combined Cycle plant.

As part of the design process, the companies are assessing technologies to manage and smooth electricity demand, including systems that can respond to rapid load changes. The aim is to improve system reliability during peak demand and dry-year conditions.

CDC said its data centres are designed to minimise or eliminate reliance on local water resources. The company uses closed-loop cooling systems that recirculate the same water through the facility rather than continuously drawing from the local network.

For the Stratford project, CDC said it would explore a path to a net zero-water-use cooling system, including rainwater collection and reuse in the design. Where practical, captured water could also be used for landscaping, biodiversity and community water initiatives.

Its New Zealand data centres hold Toitū Net Carbon Zero certification and Toitū Enviromark Diamond certification for a third consecutive year. Diamond is the highest level in the Toitū Enviromark programme.

Early stage

CDC Founder and Chief Executive Officer Greg Boorer said the company saw merit in testing the opportunity in Stratford as demand for digital infrastructure grows.

"At a time when digital infrastructure is becoming increasingly important to national resilience and economic productivity, we see value in a project shaped by New Zealand's energy capability, significant local ownership and long-term regional participation," Boorer said.

The companies said work is currently limited to consenting, site and infrastructure design, customer engagement and development planning. Neither side has committed to construction, and any development would depend on securing anchor tenants, approvals and project finance.

Boorer said the assessment process remained at an early stage and would proceed only if the proposal met the required tests.

"Our focus at the moment is on working systematically through the technical, consenting, commercial and stakeholder work required to assess this opportunity. The project would move forward only if it meets all required criteria and CDC's high standards for secure, resilient and responsible digital infrastructure," he said.

Contact said the proposal would not affect the operation of its existing 200 MW generation assets in Stratford.