As demand for digital services grows, so do the myths about how data centres operate. Far from being energy drains or isolated facilities, New Zealand’s data centres are setting global benchmarks in sustainability, resilience, and economic impact.
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NZTech’s recently released Data Centres Report (September 2025) highlights just how important this sector is to our digital future. Drawing on insights from that report, here are three of the most common myths about data centres, and the facts that challenge them.
Myth 1: Data centres are massive energy guzzlers and bad for the environment
The reality: Modern New Zealand data centres are among the most energy-efficient in the world, with an average PUE (power usage effectiveness) of 1.3, which is better than the global average of 1.54. Thanks to our cooler climate and modern infrastructure, local facilities require less energy and water for cooling compared to many overseas sites.
Data centres only consume 0.6% of New Zealand’s total electricity, and large-scale operations are often more efficient than businesses running their own in-house servers. Optimised workloads in these facilities can be up to 4.1 times more efficient than on-premise setups.
That said, energy and water use can vary significantly depending on the type of data centre and the technology employed. While New Zealand facilities are leading the way in sustainable operations, data centres globally still have a sizable environmental footprint. Ensuring that growth in digital infrastructure continues to align with New Zealand’s environmental values and mitigates any potential impact is critical to building a sustainable, resilient digital future.
Myth 2: Data centres are unreliable and prone to outages
The reality: Data centres are built for uptime and resilience. They use robust infrastructure, including backup generators, uninterruptible power supplies (UPS), and advanced monitoring, to ensure services stay online even during grid fluctuations.
For mission-critical services such as healthcare, banking, telecommunications, and emergency response, this reliability is essential. High uptime means digital services are always available when people need them, protecting both business continuity and public safety.
Outages are rare, but when they occur, they can be costly. Globally, one in five impactful outages costs more than $1 million. That is why New Zealand operators invest heavily in resilience, ensuring downtime is minimised and trust is maintained.
Myth 3: Data centres don't really benefit the wider economy
The reality: Data centres are a backbone of New Zealand’s digital economy. They enable cloud computing, AI, and other modern services that drive innovation, attract investment, and support GDP growth. In 2024 alone:
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ICT activity supported by data centres contributed $16.5 billion to GDP.
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A further $76.5 billion was generated by knowledge-intensive services enabled by reliable digital infrastructure.
The sector also creates jobs at scale. For every direct role in a data centre, up to six indirect jobs are created in construction, energy, logistics, security, and professional services. With demand rising, the industry is unlocking high-value career opportunities in cloud architecture, cybersecurity, and advanced trades, often with above-average wages and strong career progression.
New Zealand’s data centres also operate within robust local regulatory and compliance frameworks, ensuring data is stored and managed under New Zealand’s legal jurisdiction. This approach protects national data sovereignty while continuing to attract global investment and partnerships.
The takeaway
Far from being hidden warehouses of servers, data centres are sustainable, resilient, and economically vital infrastructure. They’re not just keeping New Zealand connected, they’re powering the future of our economy, communities, and innovation.
Source
Empowering Aotearoa New Zealand’s Digital Future – Our National Data Centre Infrastructure