The past year has seen numerous developments in cloud infrastructure. Public cloud services added an estimated NZ$24.3 billion to the economy of New Zealand in 2024 alone, which makes up around 6% of the country's gross domestic product. Big tech companies, such as Microsoft and now Amazon, have also rushed to build computer centers in the country.
Cloud technology in New Zealand
Cloud computing provides access to resources like data storage, processing capabilities, and software programs through internet connections instead of using local computers or servers. Organizations prefer cloud-based systems because they offer improved flexibility, the ability to scale operations up or down, and reduced costs. These advantages help companies expand and develop new ideas without being limited by traditional technology setups.
Many large businesses, such as Royal Panda Casino and several other platforms, have to deal with the data of thousands of users, which keeps piling up by the day. Cloud infrastructure offers an effective solution for managing these expanding data requirements.
Businesses have been adopting cloud technology in New Zealand and the rest of the world at an encouraging rate due to the benefits it offers. A report revealed that about 70% of businesses in New Zealand attested to the importance of cloud technology to their strategies and goals.
Cloud infrastructure as a national asset to New Zealand
Cloud infrastructure grew a lot in New Zealand — and not just because it was more efficient; it brought economic opportunities, too. For instance, Amazon recently introduced cloud services to New Zealand and plans to invest in data centers worth over NZ$7.5 billion nationwide.
Building and maintaining these data centers in New Zealand is expected to generate more than 1,000 full-time positions annually and contribute approximately NZ$10.8 billion to the country's gross domestic product. This new regional presence will provide current customers with a domestic alternative for running workloads, storing data within the country, and delivering digital services with reduced latency.
Apart from the economic importance of cloud computing, there is also the matter of record keeping and national security. Record keeping is essential for every organization in the public and private sectors in the Kiwi nation. For example, in public services, online tax portals and digital health records have streamlined older processes to make them more user-friendly for staff and citizens.
Businesses enjoy relatively more affordable cloud services thanks to the presence of cloud hosting corporations in the country. Physical servers require more units of electricity to maintain, not to mention their issues with scalability.
Similarly, cloud technology is an asset for the New Zealand government because protecting its national data in the cloud is akin to securing its sovereignty. Corporations are not the only ones affected by cybersecurity, as national data is also under attack online. Apart from being at the receiving end of cyberattacks, dependence on foreign-hosted cloud systems can be risky.
New Zealand’s environmental goals
New Zealand has a goal to become a zero-carbon-emission nation by 2050, and to achieve this, it must streamline business activities in the country to require less energy. Modern cloud data centers are more efficient with energy usage than traditional servers. With low energy requirements, these hosting firms can operate on renewable energy sources that are more environmentally friendly.
Microsoft opened New Zealand's first big cloud region in December 2024, powered by 100% clean energy and using special air-cooling technology. This was a big deal because it meant New Zealand companies could store their important data locally for the first time — instead of sending it to Australia or other countries.
AWS will also use renewable energy to power the cloud region of its data centers. The company signed a Wind Power Purchase Agreement with Mercury to use 50% of the output from the 103MW Turitea South onshore wind farm.
Final thoughts
Cloud infrastructure in New Zealand holds a key role in several sectors of the nation’s economy, security, and sovereignty. Conventional digital technology in New Zealand relies heavily on cloud technology, and more than half of the businesses in New Zealand now use it. All of these reasons show why cloud technology is slowly becoming a national asset in New Zealand.
