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New Zealand Data Center Market Size

The New Zealand data center market is experiencing significant growth, with the market size expanding rapidly over the forecast period. The demand is shifting from Tier 1 and Tier 2 facilities to Tier 3 and Tier 4 data centers, driven by the need for uninterrupted business services and advanced technological infrastructure. The Tier 4 segment, in particular, is poised for the fastest growth, reflecting the increasing reliance on data centers for remote working and digital services. This expansion is further fueled by the broader adoption of 5G and the digitalization of various sectors, creating substantial opportunities for market development.

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Market Size of new zealand data center Industry

New Zealand Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 164.8 MW
svg icon Market Volume (2029) 354.1 MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 16.53 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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New Zealand Data Center Market Analysis

The New Zealand Data Center Market size is estimated at 164.8 MW in 2024, and is expected to reach 354.1 MW by 2029, growing at a CAGR of 16.53%. Further, the market is expected to generate colocation revenue of USD 24.8 Million in 2024 and is projected to reach USD 40.1 Million by 2029, growing at a CAGR of 10.07% during the forecast period (2024-2029).

USD 24.81 Million

Market Size in 2024

USD 40.09 Million

Market Size in 2029

17.2%

CAGR (2017-2023)

10.1%

CAGR (2024-2029)

IT Load Capacity

164.8 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the data center market in New Zealand may grow steadily and reach 354.2 MW by 2029. Auckland has the fastest growth rate of 22.21%, expected to increase the IT load capacity to 106.05 MW by 2029.

Total Raised Floor Space

Sq. Ft. 0.49 M

Volume, Raised Floor Space, 2024

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The country's total raised floor area is expected to reach 0.8 million sq. ft by 2029. Cloud and government are expected to contribute the highest market share. The cloud sector is expected to exhibit the fastest growth rate of 20.64%.

Installed Racks

22,577

Volume, Installed Racks, 2024

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The country's total number of installed racks may reach 36,870 units by 2029. The presence of various end users in the country also enables operators to set up facilities, thereby driving the entire market.

# of DC Operators & DC Facilities

23 and 48

Volume, DC Facilities, 2024

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The growing demand for cloud and colocation services in New Zealand has boosted investments in the country. Auckland is New Zealand's premier data center hub, hosting approximately 50% of the country's data centers.

Leading Market Player

21.4%

Market Share, Datacom Group Ltd, 2023

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Datacom Group Ltd operates four data centers in the country, one each in Auckland, Wellington, Christchurch, and Hamilton. The Kapua facility at Hamilton, the biggest data center, with an IT load capacity of 14 MW.

Tier 3 DC facilities dominates the market share in the region, Tier 4 is fastest growing DC market in the region

  • Tier 1 and Tier 2 facilities are losing demand due to their inability to meet the growing uninterrupted business services. A growing number of global companies are creating business continuity services and are gradually shifting priority to Tier 3 and 4 data centers.
  • The Tier 3 sector in the New Zealand data center market reached an IT load capacity of 47.03 MW in 2022 and is expected to register a CAGR of 5.63% to reach a capacity of 69.03 MW by 2029. Increased investments in the building affect data center infrastructure and technological advancements. It is expected to create lucrative opportunities for market growth by 2029.
  • Tier 4 data centers are expected to be the fastest-growing segment, with a CAGR of 31.53%. The segment amounted to just 2 MW in 2022 and is expected to touch 13.62 MW by 2029.
  • Pandemic-led demand for video conferencing, online schooling, entertainment, social networking, and platforms to support remote working led to a 47% Y-o-Y surge in global internet traffic in 2020, eclipsing initial forecasts of 28%. These services need data center facilities with minimum times and 24/7 support, which Tier 3 and 4 facilities can offer.
  • Other major demand drivers include global technology services companies catering to growing corporate requirements for remote working and other virtual arrangements. The wider adoption of 5G and further digitalization of healthcare and other government services will be the primary demand drivers of Tier 3 and Tier 4 data center growth within Asia-Pacific.
New Zealand Data Center Market

New Zealand Data Center Industry Segmentation

Auckland, Christchurch, Hamilton, Wellington are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • Tier 1 and Tier 2 facilities are losing demand due to their inability to meet the growing uninterrupted business services. A growing number of global companies are creating business continuity services and are gradually shifting priority to Tier 3 and 4 data centers.
  • The Tier 3 sector in the New Zealand data center market reached an IT load capacity of 47.03 MW in 2022 and is expected to register a CAGR of 5.63% to reach a capacity of 69.03 MW by 2029. Increased investments in the building affect data center infrastructure and technological advancements. It is expected to create lucrative opportunities for market growth by 2029.
  • Tier 4 data centers are expected to be the fastest-growing segment, with a CAGR of 31.53%. The segment amounted to just 2 MW in 2022 and is expected to touch 13.62 MW by 2029.
  • Pandemic-led demand for video conferencing, online schooling, entertainment, social networking, and platforms to support remote working led to a 47% Y-o-Y surge in global internet traffic in 2020, eclipsing initial forecasts of 28%. These services need data center facilities with minimum times and 24/7 support, which Tier 3 and 4 facilities can offer.
  • Other major demand drivers include global technology services companies catering to growing corporate requirements for remote working and other virtual arrangements. The wider adoption of 5G and further digitalization of healthcare and other government services will be the primary demand drivers of Tier 3 and Tier 4 data center growth within Asia-Pacific.
Hotspot
Auckland
Christchurch
Hamilton
Wellington
Rest of New Zealand
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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New Zealand Data Center Market Size Summary

The New Zealand data center market is experiencing significant growth, driven by the increasing demand for advanced data center facilities. As businesses prioritize uninterrupted services, there is a noticeable shift from Tier 1 and Tier 2 facilities to Tier 3 and Tier 4 data centers. This transition is fueled by the need for robust business continuity services, which are essential for supporting the surge in global internet traffic and the rise of remote working arrangements. The market is witnessing substantial investments in infrastructure and technological advancements, creating lucrative opportunities for expansion. The adoption of 5G and the digitalization of various sectors, including healthcare and government services, are key factors propelling the growth of Tier 3 and Tier 4 data centers in the region.

The market landscape is characterized by a fragmented structure, with major players such as Canberra Data Centers, Chorus, Plan B Limited, Spark New Zealand Limited, and Vocus Group Limited holding significant shares. The demand for data center facilities is further bolstered by the increasing smartphone penetration and the expansion of mobile connections in New Zealand. The country's transition from 2G to 3G and the subsequent focus on 4G and 5G technologies have enhanced connectivity speeds, supporting the need for efficient data center operations. As the market evolves, companies like Voyager Internet are strategically expanding their infrastructure to accommodate the growing cloud services demand, underscoring the dynamic nature of the New Zealand data center market.

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New Zealand Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Auckland

      2. 1.1.2 Christchurch

      3. 1.1.3 Hamilton

      4. 1.1.4 Wellington

      5. 1.1.5 Rest of New Zealand

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

New Zealand Data Center Market Size FAQs

The New Zealand Data Center Market is projected to register a CAGR of 16.53% during the forecast period (2024-2029).

Canberra Data Centers, Chorus, Plan B Limited, Spark New Zealand Limited and Vocus Group Limited are the major companies operating in the New Zealand Data Center Market.

New Zealand Data Center Market Report Snapshots

New Zealand Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029