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

The New Zealand data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the anticipated increase in market size, with substantial developments in IT load capacity, raised floor space, and the number of racks to be installed. Additionally, the construction of submarine cable systems is set to enhance connectivity, further contributing to the market's growth trajectory.

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Market Size of New Zealand Data Center Rack Industry

New Zealand Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Volume (2024) 24.46 Thousand units
Market Volume (2030) 44.78 Thousand units
CAGR (2024 - 2030) 10.60 %
Market Concentration Medium

Major Players

New Zealand Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

New Zealand Data Center Rack Market Analysis

The New Zealand Data Center Rack Market size in terms of shipment volume is expected to grow from 24.46 Thousand units in 2024 to 44.78 Thousand units by 2030, at a CAGR of 10.60% during the forecast period (2024-2030).

The New Zealand data center rack market reached a volume of over 20,000 in the previous year, and it is further projected to register a CAGR of 10.6% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the New Zealand data center market is expected to reach 350 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 800K sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 35K units by 2029. Auckland is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 8 submarine cable systems connecting New Zealand, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Hawaiki Nui, which stretches over 25,000 Kilometers with landing points from Christchurch, New Zealand; Dunedin, New Zealand land; and Invercargill, New Zealand.

New Zealand Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The New Zealand Data Center Rack Market is segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & Telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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New Zealand Data Center Rack Market Size Summary

The New Zealand data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by a shift towards cloud-based solutions, with organizations becoming more familiar and adept at managing cloud environments. This transition is supported by the country's robust telecommunications infrastructure, including initiatives like the Ultra-Fast Broadband Initiative, which has enhanced internet connectivity and facilitated the digital transformation across various sectors. The demand for data center racks is further fueled by the rise in e-commerce, mobile broadband, and Big Data analytics, necessitating the development of fully equipped data centers to handle the growing data volumes.

The market is moderately consolidated, with key players such as Eaton Corporation, Black Box Corporation, Schneider Electric SE, and Vertiv Group Corp. leading the charge in expanding their regional presence. The development of hyperscale data centers, particularly in Auckland, is a notable trend, with new facilities being established to cater to the increasing demand for rack space. Companies are investing heavily in data center infrastructure to support their IT services and storage needs, with significant projects underway to boost rack capacity. The market's growth trajectory is supported by strategic investments and developments, such as NextDC's planned data center in Auckland and Eaton's introduction of advanced rack solutions, which are designed to meet the evolving needs of the industry.

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New Zealand Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 The Rising Dominance of the 5G Network

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

New Zealand Data Center Rack Market Size FAQs

The New Zealand Data Center Rack Market size is expected to reach 24.46 thousand units in 2024 and grow at a CAGR of 10.60% to reach 44.78 thousand units by 2030.

In 2024, the New Zealand Data Center Rack Market size is expected to reach 24.46 thousand units.

New Zealand Data Center Rack Market Report Snapshots

New Zealand Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)