The National Party of New Zealand has introduced the Electrify NZ 2.0 policy, requiring new AI data centers to secure their own firmed power generation. This mandate aims to prevent increased electricity costs for existing households and businesses by ensuring developers finance new, reliable energy capacity rather than relying on the current grid.
Data centers currently consume approximately 0.6% of New Zealand's electricity, with projections estimating this will reach 3% by 2030. The policy is designed to support the renewable energy sector while potentially attracting between $25 billion and $35 billion in AI infrastructure investment.
Under the proposed framework, developers would need to finalize power purchase agreements before proceeding with projects. The initiative builds on existing market practices, such as the March 2026 agreement where Mercury Energy signed a 15-year, 140 MW deal with Datagrid for its planned 280 MW campus near Invercargill.
The government emphasizes that firmed power must be consistently available, regardless of weather conditions. While the National Party leads this initiative, other political groups, including the Labour and Green parties, are also developing similar proposals with varying details.
