New Zealand has a timely opportunity to build the digital infrastructure needed to lift productivity, strengthen national resilience, create thousands of jobs and develop a sustainable new export industry, according to a new strategy released today by DataCentres New Zealand.
The New Zealand Data Centre Strategy: Empowering Aotearoa New Zealand’s Digital Future with Data Centres the New Zealand Way sets out a vision for New Zealand to become a trusted and sustainable hub for data centre and AI infrastructure investment, while ensuring the building of this digital infrastructure is good for New Zealand
Data centres underpin almost every part of modern life and the economy; from banking, communications and healthcare to education, trade, government services, cloud computing and artificial intelligence (AI). However, much of the processing required by New Zealand businesses and services currently takes place offshore.
The strategy argues that New Zealand can capture more of the value created by its growing demand for digital services by developing secure, efficient and resilient domestic data centre capacity, while also attracting international investment.
Tech New Zealand’s Graeme Muller said data centres should be recognised as essential national infrastructure.
“Every digital interaction depends on data centres. They are the backbone of our digital economy, supporting the productivity, security, connectivity and creativity that New Zealanders rely on every day,” says Graeme Muller, Chief Executive, Tech New Zealand.
“New Zealand has a significant opportunity to build the infrastructure our economy needs, create thousands of skilled jobs, support further investment in renewable electricity generation and establish a new sustainable export industry for future generations.
“But this is a competitive global market. Other countries are moving quickly to attract the substantial investment now flowing into digital and AI infrastructure. New Zealand must move with purpose if we are to secure our share of that opportunity.”
New Zealand’s highly renewable electricity system, cool climate, political stability and trusted international reputation provide a strong foundation for responsible data centre growth.
The strategy proposes that future development should meet a high standard: energy-efficient, secure, resilient, transparent and supportive of New Zealand’s renewable energy transition.
It identifies two connected objectives:
- Domestic growth as a national necessity: ensuring New Zealand has the data centre and AI infrastructure required to improve productivity, strengthen resilience, support critical services and build national capability.
- Export growth as a new opportunity: positioning New Zealand as a credible destination for trusted and sustainable data centre investment, while supporting growth across engineering, construction, connectivity, renewable energy and digital services.
The strategy highlights the potential economic benefits of new investment. Forecast data centre construction is expected to support thousands of construction roles over many years, while data centres and their supporting services already employ an estimated 6,800 people. This figure is expected to grow significantly as capacity expands.
It also notes that global investment in data centres is forecast to reach US$6.7 trillion by 2030. With coordinated action, New Zealand can compete for an appropriate share of this investment and convert it into long-term economic, employment and export benefits.
“We must learn from overseas experience and make sure that data centres built in New Zealand are good for New Zealand”, says Muller, “and this strategy proposes ways to ensure we build data centres the New Zealand way”.
The strategy calls for Government and industry to work together on three immediate priorities:
- Strengthen coordination across the ecosystem
Establish long-term coordination between Government, industry, the electricity sector, telecommunications providers, iwi, regions and communities. This includes more predictable consenting and grid-connection processes, priority development zones, a Ministerial Advisory Group to support infrastructure planning and a cross-industry Accord committing to building good data centres. - Promote New Zealand data centres locally and internationally
Develop a clear global value proposition for New Zealand as a location for “trusted and sustainable compute”, alongside credible information that helps New Zealanders understand the sector’s role in the economy, energy system and digital future. - Attract investment in capability and capacity
Encourage investment in data centres, renewable energy generation, international connectivity, local skills and workforce pathways. This will help ensure New Zealand can build the capacity needed to support both domestic demand and future export opportunities, benefit from new jobs and investment in additional electricity
Thoughtful planning is central to realising the opportunity.
“Growth needs to be carefully managed. Data centre development must complement New Zealand’s wider energy, environmental and community objectives,” says Graeme.
“Done well, new data centres can help drive investment in additional renewable generation and enabling infrastructure. The goal is not simply more capacity; it is building the right capacity, in the right places, in a way that is good for New Zealand.”
DataCentres New Zealand is a nationally connected tech community within the Tech New Zealand group. It brings together data centre operators, developers, networks, electricity providers and the wider ecosystem to strengthen the sector, promote its capabilities and help advance national policy and investment.
About DataCentres New Zealand
DataCentres New Zealand is the united voice for Aotearoa New Zealand’s data centre ecosystem. It connects data centre operators and the broader sector to strengthen New Zealand’s data centre industry, promote its capabilities and achievements, and help advance national policy and investment. DataCentres New Zealand is a Tech New Zealand community.
For further information contact:
Graeme Muller, CEO, Tech New Zealand
graeme.muller@technewzealand.org.nz
021 0252 0767