New Zealand Data Center Market to Reach $1.87 Billion By 2027: Arizton

New Zealand Data Center Market size was valued at $672 million in 2021 and is expected to reach $1.87 billion by 2027, growing at a CAGR of 18.65 during 2022-2027

New Zealand data center market size will witness investments of USD 1,875 million by 2027 from 672 million in 2021, growing at a CAGR of 18.65% from 2022-2027. The New Zealand data center industry is being driven by elements like the use of cloud computing and cutting-edge technologies like the Internet of Things (IoT), big data, artificial intelligence, the rollout of 5G, and government assistance for facility construction.

Cloud service providers with significant local presence include AWS, Microsoft, and Google. AWS, a major provider of cloud services, for instance, revealed intentions to launch a cloud region in New Zealand by 2024 that would include three availability zones (AZs).

The country’s public cloud market is anticipated to earn USD 1.5 billion in sales in 2022 and USD 3 billion by 2027, rising at a CAGR of 16.5%. SaaS will take the lead in the revenue growth with a $0.75 billion contribution.

Microsoft, a provider of cloud services, and Auckland Transport recently announced a cloud partnership to advance innovation, sustainability, and cost-effectiveness in the transportation sector. The country’s 5G services are being deployed by a number of important telecom companies, including Vodafone, 2degrees, and Spark. By the end of 2023, Spark Digital, for instance, hopes to have 5G coverage available to about 90% of New Zealand’s population.

Key Highlights

New Zealand has around 28 operational colocation data centers. The major colocation operators are Data Vault, Datacom, Plan B, Spark Digital, Chorus, and Vocus.
In New Zealand, Auckland hosts major ICT companies and is one of the leading startup ecosystems. It is a significant city for data center investments in the country. Christchurch and Wellington follow it due to low land cost, space availability, and availability of renewable energy.
Various free trade zones are witnessing data center development in New Zealand. GEODIS’ Free Trade Area provides tax incentives, end-to-end integrated solutions, and supply chain optimization.
Most electricity is produced by the country’s hydropower, geothermal, solar, and wind. According to the New Zealand renewable energy policy, the country aims to produce 100% of renewable energy by 2030 and reduce greenhouse gasses to net zero by 2050
The country has around eight existing submarine cables, including Hawaiki Nui is under development; the cable owned by Hawaiki Submarine Cable will connect New Zealand to Australia, Indonesia, Singapore, and the US with a cable length of 25,000 km, which is expected to come in service in 2025.
Aotearoa New Zealand’s vision is to develop cutting-edge companies producing and exploiting AI technologies by 2030.

Vendor Landscape

The New Zealand data center market is witnessing the entry of new investors, such as CDC Data Centres and DCI Data Centers, involved in developing facilities in the country.
In 2021, the country also witnessed the deployment of modular facilities; for instance, T4 Group is planning to build a modular center in New Zealand with an investment of around USD 34.6 million.
In New Zealand, most data centers are procuring renewable energy sources to improve the sustainability of the facilities. For instance, Microsoft is partnering with Ecotricity to power its data center region in New Zealand with 100% renewable energy.
The New Zealand data center market has the presence of both local and global construction contractors that cater to major operators in the market. For instance, Hawkins is involved in developing the Microsoft data center cloud region in Auckland, New Zealand.
In New Zealand, companies collaborate with IT infrastructure providers to improve infrastructure efficiency in the facilities. Datacom’s Orbit Auckland facility has Stratum-1 NTP (network time protocol) time servers.