New Zealand Data Center Construction Market Size (2024 - 2029)

New Zealand Data Center Construction Market Analysis

The New Zealand Data Center Construction Market size is estimated at USD 0.67 billion in 2024, and is expected to reach USD 1.75 billion by 2030, growing at a CAGR of 17.21% during the forecast period (2024-2030).

• The upcoming IT load capacity in the region is expected to reach more than 300 MW by 2030 for under construction IT load capacity.
• The construction of raised floor area for data centers in the region is expected to reach more than 0.8 million sq. ft by 2030 for under construction raised floor space.
• The region's total number of racks to be installed is expected to reach above 35,000 units by 2030, with Auckland expected to house the maximum number of racks by that time for planned racks.
• The region is witnessing rising submarine cable projects. For instance, in January 2024, Intelia New Zealand has unveiled the Te Waipounamu submarine cable project, connecting Invercargill to Sydney and Melbourne. Spanning 3,000 km, the system boasts 16 fiber pairs: 4 pairs from Invercargill to Australia, each providing a robust 120 Tbps capacity, and 2 pairs linking Sydney and Melbourne, each with a capacity of 35 Tbps. Such initiatives are expected to provide more opportunities for the vendors studied in the market.
• Furthermore, New Zealand aims to introduce open banking by 2025, making the sector the first to give consumers full control of their financial data. Proponents of "open banking" say it may allow consumers to share their banking data with other providers to get better and cheaper services than they already have. Australian banks, which dominate New Zealand's banking sector, are increasing their reliance on data to approve loans and better sharing of data to support this. The ability to automate large parts of loan processing is considered a way to cut costs by banks, which are a headwind due to rising interest rates and staff wages.

New Zealand Data Center Construction Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services. Under data center construction, we are tracking the capital expenditure that was incurred while building the existing data center facilities and also estimating the future capex based on upcoming data center facilities.

The New Zealand Data Center Construction Market is segmented (by Infrastructure (Electrical Infrastructure (Power Distribution Solution(PDU, Transfer Switches, Switchgear, Power Panels and Components, others)), Power Back-up Solution (UPS, Generators), Service – Design & Consulting, Integration, Support & Maintenance)), (Mechanical Infrastructure (Cooling Systems (Immersion Cooling, Direct-to-Chip Cooling, Rear Door Heat Exchanger, In-Row and In-Rack Cooling)), Racks, Other Mechanical Infrastructure)), General Construction)), by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by End User (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.