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The Economic Impact of Data Centres in New Zealand

2 Min Read

Data centres are no longer just the hidden warehouses of the internet. In New Zealand, they are becoming economic infrastructure, powering investment, creating jobs, and enabling the services businesses and communities rely on.

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The latest NZTech Data Centres Report (September 2025) shows how significant this impact is, and why the sector is an essential part of our economic future.

The sector’s growth is being driven by a combination of global hyperscalers (including AWS, Microsoft, Google, and Oracle) and homegrown providers such as TEAM Cloud, powered by Oracle Cloud (learn more about us here). Together, these players are expanding New Zealand’s digital backbone while investing in renewable energy, workforce development, and regional infrastructure.

The Sector's Growth Strategy

Over the next decade, billions of dollars in private capital will flow into New Zealand’s data centre sector. This investment supports construction, energy, digital services, and long-term operational roles, creating a ripple effect across the economy.

New facilities, whether launched by global hyperscalers or domestic providers, are building the foundation for a digitally connected, high-growth economy.

Jobs and Skills

The sector is already employing thousands, with up to 15,000 construction jobs during the build phase and almost 7,000 ongoing roles in operations and support. By 2030, the workforce is expected to double.

For New Zealanders, that means long-term career pathways in a high-growth, globally connected industry.

Regional and Global Reach

While Auckland hosts most facilities, a wave of smaller regional data centres is emerging. These bring jobs and infrastructure to local communities while improving speed and resilience for businesses, iwi, and public agencies.

Globally, New Zealand has an edge. Abundant renewable energy, a cool climate, and political stability make us a natural hub for low-carbon, secure digital services. That reputation attracts international players and strengthens export potential for local tech.

Productivity and Innovation

Every sector now depends on digital. Data centres make that possible at scale, giving businesses and government agencies secure, efficient, and cost-effective infrastructure.

New Zealand’s facilities are among the most energy-efficient in the world, with a Power Usage Effectiveness rating of 1.3 compared to the global average of 1.54. Efficiency drives down costs and strengthens our sustainability credentials.

Enabling the Energy Transition

Data centres are also pushing renewable energy forward. Power purchase agreements with operators, including AWS and Oracle/TEAM Cloud, are helping fund new wind and solar projects, accelerating the country’s journey to 100 per cent renewable generation.

What Needs to Happen Next

The opportunity is clear, but so are the risks. To fully unlock the benefits, New Zealand must:

  • Expand electricity supply and grid capacity
  • Streamline planning and consenting processes
  • Invest in workforce skills and training
  • Manage environmental impacts responsibly

The Bottom Line

Data centres are more than technology assets—they are strategic infrastructure that underpins economic growth. By enabling investment, creating jobs, and driving productivity, they have the potential to become one of New Zealand’s most important levers for economic growth.

The question is not whether we need them, but how quickly we can create the conditions for them to thrive.

 

Source

Empowering Aotearoa New Zealand’s Digital Future – Our National Data Centre Infrastructure