Council to develop position statement on AI data centres

Waikato Regional Council is preparing a position statement on AI data centre development in the region.
 
The Regional Growth and Resilience Committee yesterday endorsed the preparation of a position statement that will outline key principles for maximising economic and social benefits while minimising environmental, infrastructure and land-use impacts. 
 
Committee chair Keith Holmes said the Waikato region, with its strategic industrial areas and strong energy infrastructure, was well positioned to benefit from the growing global demand for AI and digital infrastructure.
 
“This is an opportunity to show that Waikato Regional Council is ready and willing to take the lead on economic opportunities, responding quickly and working collaboratively to ensure positive outcomes for the whole region,” said Cr Holmes. 
 
“We need to be balancing economic opportunities with responsible management of energy, water, land-use and environmental impacts, to ensure the long-term benefits for our Waikato communities.”
 
Regional Economic Lead Tariq Ashraf told the committee that North Waikato and Taupō were among six “advantaged zones for data centre deployment” identified in an Invest New Zealand campaign seeking international investment, and the government agency had called staff to provide input. 
 
Mr Ashraf said developing a clear, regional position on the development of AI data centres would put the council on solid footing and provide clarity moving forward.
 
“One of the council’s roles is to help attract investment into the region, but there are other roles we undertake as well, including when it comes to issuing consents for such an enterprise.”
 
The committee heard the benefits of AI data centres in the region included investment into the region, employment, digital infrastructure growth, data sovereignty and enhanced digital resilience.
 
However, the impacts included electricity demand, significant water consumption, land-use implications, visual and noise impacts on communities.
 
Sustainability and Climate Change Senior Advisor Joy Moir said not all data centres were equal and that new, advanced technologies were becoming increasingly prevalent, including renewable energy-powered AI data centres and closed loop, water-efficient cooling systems. 
 
“Genuine community engagement is also what good development looks like,” said Mrs Moir.
 
Other items on the agenda
 
•    The Insurance Council of New Zealand presented on the relationship between natural hazard risk, climate change and insurance. The committee heard that insurance companies were moving towards a risk-based pricing, based on the significant increase in extreme weather events in the past decade or so. Insurers focused on risk reduction and adaptation measures, and would adjust their models for pricing as evidence showed risks decreasing over time. The Insurance Council, which represents all insurers in New Zealand, said it would be happy to provide its perspective on housing developments, and spatial and regional infrastructure planning initiatives to help ensure new buildings are not located on land deemed too high risk to insure, or where insurance costs would be unaffordable.
 
•    Research of long-term rainfall records shows that the Waikato region is becoming both drier and more variable. While average annual rainfall has generally declined since the 1960s, with 2011 to 2020 identified as the driest decade on record, some parts of the region are experiencing more frequent and more intense extreme rainfall events. For example, since records began at the Castle Rock rain gauge in the Coromandel Peninsula in 1991, 12 extreme rainfall events have been recorded – all since 2001, and three in 2023 alone. The findings suggest Waikato is facing greater climate volatility, with very wet and very dry conditions occurring closer together. This has important implications for flood risk, water security, infrastructure resilience, and future climate adaptation planning across the region.
 
•    Waikato Regional Council's latest Climate Change Risk Assessment confirms climate change remains a significant and evolving strategic risk for the organisation and the region. Flood protection assets are among the council's highest climate-related risks due to more frequent and severe flooding, changing rainfall patterns and prolonged dry periods. The review identified growing concern about long-term funding requirements needed to adapt to and address climate-related risks. It also found the council’s stronger organisational ownership of climate risks had increased cross-team engagement and confidence in using climate risk information to guide decisions.
 
•    A report on economic development in the context of Simplifying Local Government was presented to the committee. The report found Waikato's economy operated as an interconnected system, with businesses, workers, infrastructure and natural resources crossing council boundaries, making regional coordination critical for investment attraction, economic strategy, research, and business support. It said many economic development functions achieved better outcomes and economies of scale when delivered regionally, and that the Waikato Regional Economic Development Strategy was best implemented at this level. It also noted that regional economic development could continue through shared service arrangements or council-controlled organisations operating across multiple jurisdictions.
 
•    The committee resolved to recommend to the council the establishment of two advisory groups for economic development in the Waikato region: a Steering Group to support implementation of the Waikato Regional Economic Development Strategy; and an Advisory Panel to provide business and industry perspectives to the council to support its regional economic development activities and engagement with the economic development stakeholders.