Consent has been granted by the Central Otago District Council for a computer data centre to be built near the Clyde Dam, the first of its kind for the area.

A hearing for Contact Energy’s proposal to build the energy-hungry computer processing unit on behalf of UK-based company Lake Parime was heard last month, with the noise of humming fans being one concern from neighbours.

In his decision released yesterday, planning commissioner Robert Nixon acknowledged those worries.

“I consider that noise is the single biggest issue arising from this application.

"I am conscious that this application introduces an activity, which is relatively new within New Zealand and certainly within the district and in a location which has perhaps unusual topographical characteristics given the presence of the nearby Clyde Dam.”

He said that while the noise of cooling fans may be continuous for significant periods, especially during warm weather, he was satisfied Contact Energy had taken potential effects into account, in its plans.

A landscape plan for the data centre shows eight shipping-container-like units at the front and an Aurora Energy substation at rear. Graphic: Contact Energy Ltd

The application was to subdivide a plot of land just downstream from the Clyde Dam, on the opposite side of the Mata-au, Clutha River from Clyde township and gain resource consent to construct the unit.

The data centre – effectively eight containers each home to 368 computer servers – would be built by Contact, but owned by Lake Parime.

It would require 10 megawatts of power from the Clyde Dam, which could generate 464 megawatts at peak operation.

Contact could sell power to Lake Parime during times of surplus but when river and lake levels were low and supply under demand, they could request the centre reduce use.

New Zealand was attractive to these types of overseas companies who provided electricity retailers much-needed off-peak demand for power.

Contact Energy spokesperson Leah Chamberlin-Gunn told The Central App that Lake Parime was currently looking at other sites in New Zealand to build more data centres but Contact had nothing more planned at the moment in Central Otago.