CDC Data Centers and Contact Energy (New Zealand’s largest electricity generators and energy retailer) have announced they are working together to investigate the feasibility of a data center in Stratford, Taranaki, situated on land near Contact's former Taranaki Combined Cycle power station. The project remains at an early exploration stage, with neither company having committed to constructing a facility.

A Site Defined by Energy and Connectivity

The Stratford location has been identified for its existing infrastructure advantages, including diverse high-capacity fibre connections, both terrestrial and subsea, linking the site to Auckland, where New Zealand's international cables land. CDC Founder and Chief Executive Greg Boorer described Stratford as a rare opportunity to unite renewable energy with critical digital infrastructure.

"Stratford has the potential to bring together renewable generation, grid connection, fibre and a skilled technical workforce in a way very few places can. That combination is why we are looking at it seriously," Boorer said.

The combination of grid connectivity, a prospective renewable energy supply, fibre diversity, and an available technical workforce forms the basis of CDC's interest in the region. Few locations, the company has indicated, offer all of these elements simultaneously.

Critical and Sovereign Workloads at the Fore

Should the facility proceed, it would be designed with a specific focus on critical and sovereign workloads. CDC has outlined that intended users would include government and public sector systems, healthcare and emergency services, scientific and research computing, banking and payments infrastructure, and communications networks that must remain operational when other systems fail.

Boorer emphasised the nature of the infrastructure CDC builds and the stakes involved in its operation. "CDC builds the infrastructure that governments, health systems, emergency services, researchers, and financial institutions depend on. This is where sovereign data is held, where critical systems stay online, and where the most sensitive information stays in country," he said.

The explicit focus on sovereign data and critical systems positions the proposed Stratford facility within a broader conversation about national digital resilience and the importance of keeping sensitive government and institutional data housed within New Zealand.

Renewable Energy Supply and Grid Implications

Electricity for the proposed facility is intended to be supplied under a long-term contract, supported by new generation drawn from Contact Energy's renewable development pipeline.

The arrangement is structured to address concerns that large data center projects can place strain on the existing electricity supply by instead underpinning investment in new generation capacity.

CDC has stated that large-scale, long-term demand of this kind can help support investment in new renewable generation and battery storage, thereby strengthening the wider energy system rather than competing for existing supply. This framing positions the project as a contributor to New Zealand's renewable energy buildout rather than a burden on current grid resources.

CDC's existing New Zealand data centers are powered by 100 per cent renewable electricity and have been Toitū net carbon zero certified since their first year of operation.

The company has also received a Toitū Enviromark Diamond certification for the fourth consecutive year, which represents the highest level within the Toitū Enviromark programme and recognises organisations that have embedded environmental management into their operations, decision-making and processes of continual improvement.

Water Use and Cooling Infrastructure

Water consumption is a frequently cited concern in data center development, particularly in regions where freshwater resources are sensitive. CDC has outlined its approach to this issue in the context of Stratford.

The company uses a closed-loop cooling system across all of its developed facilities, which is filled once at construction, typically using captured rainwater, and recirculated for the life of the facility. CDC states that its facilities do not draw on local water supplies, rivers, or groundwater on an ongoing basis.

For the Stratford project specifically, CDC has said it will explore a pathway to a net-zero water-use cooling solution, incorporating rainwater collection and reuse designed into the facility from the outset.

This represents an ambition beyond the company's existing standard practice and reflects the particular sensitivities that may apply to water use in the Taranaki region.

Next Steps and Conditions on Development

The announcement made on 10 August 2026 is clear that the project has not advanced beyond an exploration phase. Any development would be subject to due diligence, consenting requirements, commercial requirements, and engagement with key stakeholders. CDC and Contact Energy have explicitly stated that neither company has committed to constructing a facility.

The consenting process in New Zealand for a project of this scale and nature would typically involve resource consent under relevant planning frameworks, along with stakeholder consultation that could include local iwi, regional councils, and affected communities in Taranaki.

The exploration comes as data center demand across the Asia-Pacific region continues to grow, driven by cloud adoption, artificial intelligence workloads, and increasing requirements from governments and institutions to maintain data sovereignty within national borders.

CDC's framing of the Stratford project around sovereign and critical infrastructure reflects the growing policy significance of where and how sensitive national data is stored and processed.

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