As AI adoption surges, global demand for computing capacity and the data centres that provide it is growing faster than ever. AI models, new applications and growing data volumes all need reliable, large-scale digital infrastructure and electricity generation. Rather than viewing this as a strain on the existing grid, leading economies are using data centre demand to attract investment and accelerate the build-out of renewables – strengthening energy markets and enabling energy abundance.
In our 2025 report, Future of NZ Inc: What Will New Zealand Be Known for in 2050?, we identified data centres as a growth opportunity for New Zealand, harnessing the country’s competitive advantage in sustainable energy.
This report builds on that foundation by exploring data centres as strategic infrastructure for New Zealand. We assess the market landscape, New Zealand’s right to win global market share, the benefits of data centres to the New Zealand economy and the challenges associated with rapid data centre development. We then present recommendations for local energy and digital infrastructure stakeholders to take advantage of the opportunity.
Why This Matters for New Zealand – a $70 Billion Opportunity
Global computing capacity is expected to more than double by 2030, but demand is still far outpacing supply. As a growing share of workloads – particularly AI model training – are not latency-sensitive (meaning distance is no longer a constraint), computing capacity can increasingly be located where power and infrastructure are most competitive.
New Zealand has strong underlying advantages – abundant renewable energy resources, strong fibre connectivity and a stable and reliable operating environment. However, these advantages won’t automatically translate into investment; many countries are vying to win global capital.
New Zealand does not need to become the largest data centre hub globally to benefit. By moving beyond servicing domestic demand and capturing more than its proportional share of international investment, there is a realistic opportunity to generate significant economic value. If New Zealand can position itself as a preferred destination, it could unlock up to $70 billion of economic activity over the next decade, including the construction and operation of large-scale data centres and matched renewable energy generation – creating new skilled jobs and economic opportunities, often in regional communities. Being a regional data centre hub could also create broader spillover effects as New Zealand’s digital and innovation ecosystems draw on the scaled data capacity.
New Zealand’s Strong Competitive Position Across Major Data Centre Investment Drivers
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New Zealand Is Already on the Journey, but Now Is the Time to Accelerate Progress
New Zealand is building momentum: ~80 MW of new data centre capacity has been added over the past five years (tripling the local market), Microsoft and Amazon have launched local cloud zones, new subsea connections are being delivered, and renewable generation is being commissioned at a record pace. But the global race for data centre investment is intensifying - New Zealand needs to move faster and with greater coordination to win global share. The report recommends a holistic acceleration package to enhance New Zealand’s existing advantages and promote the country as a global data centre hub.
Inside the Report
The report assesses data centres as strategic infrastructure for New Zealand by examining:
- The global data centre market and how AI is reshaping demand for computing capacity
- New Zealand’s right to win global market share, based on energy, connectivity, operating conditions and cost competitiveness
- The potential economic impact of a data centre market, including jobs, a new export industry and spillover benefits for New Zealand’s growth ecosystems
- The challenges posed by the rapid scale-up of data centres, from energy system balance to consenting and community outcomes
- Practical recommendations to accelerate development while managing challenges
Read the report to find out how this acceleration package can help translate New Zealand’s natural advantages into sustained investment and long-term economic value.
