Data Centers in New Zealand

New Zealand – Resilient Hub for Oceania

New Zealand provides a stable, highly connected, and secure location for deploying critical infrastructure. The market is ideal for enterprises requiring a strategic foothold in Oceania for disaster recovery or to serve local and Pacific Island markets with low latency. Its commitment to renewable energy and robust international connectivity ensures both resilient and sustainable operations.

New Zealand: At A Glance

Network & Connectivity Ecosystem

New Zealand's ecosystem is mature and competitive, with significant investment in international and domestic fiber. With 56 data centers, the market offers considerable choice for colocation and interconnection.

Carrier Density & Carrier Neutrality: Over 10 carriers operate within New Zealand, providing a competitive landscape for connectivity, as of September 2025. Carrier-neutral facilities are common in major hubs like Auckland, offering resilient network options.

Direct Cloud On-Ramps: The country has over 3 dedicated cloud on-ramps, enabling direct, low-latency connections to 3 major cloud regions, as of September 2025. Providers with a direct presence include:

• AWS
• Microsoft Azure

Internet Exchange Points (IXPs): Key peering points include the Auckland Peering Exchange (APE) and the New Zealand Internet Exchange (NZIX). These IXPs facilitate efficient traffic exchange between networks, reducing latency for end-users across the country.

Bare Metal: Bare metal cloud services are readily available from multiple providers. Global suppliers like Hivelocity offer dedicated server solutions from data centers within the region.

Power Analysis

New Zealand's power infrastructure is a key advantage, defined by its high proportion of renewable generation and grid stability.

Average Cost Of Power: Industrial power costs typically range from NZD $0.12 to $0.18/kWh, as of September 2025. This competitive pricing, combined with a grid powered by approximately 82% renewable sources, helps control both operational expenses and carbon footprint.

Power Grid Reliability: The national grid is well-engineered and reliable, particularly in the primary data center markets of Auckland, Wellington, and Christchurch. Major facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

New Zealand offers a transparent and straightforward business environment, making it an attractive location for international companies.

Proximity To Key Business Districts: Data centers are concentrated around Auckland, the nation's economic center. This provides low-latency connectivity to the financial services, technology, and digital media industries clustered there.

Regional Market Reach: The country serves as a strategic digital hub for the South Pacific. It offers an excellent location for disaster recovery solutions for Australian operations and is a primary gateway for serving the Pacific Islands.

Tax Advantage For Data Centers: While New Zealand does not offer specific tax incentives for data center development, its stable and predictable tax system is a significant benefit. The absence of complex local or state taxes simplifies financial planning and compliance for businesses.

Natural Disaster Risk

New Zealand has a very low overall natural disaster risk profile, with an INFORM Risk score of 1.5 out of 10, as of September 2025. While specific hazards exist, the country's infrastructure and coping capacity are well-developed.

Key risks to consider include:

• Earthquake: The most significant single hazard, reflecting the country's position on the Pacific Ring of Fire.
• Tsunami: A material risk for coastal facilities, directly related to seismic activity.
• Coastal & River Flood: Moderate flood risks exist in specific low-lying areas.