According to Arizton’s latest research report, the New Zealand data center colocation market is projected to reach CAGR of 26.13% during 2024-2030.
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Report Scope:
MARKET SIZE – COLOCATION REVENUE: USD 443 Million (2030)
CAGR – COLOCATION REVENUE: 26.13% (2024-2030)
MARKET SIZE – UTILIZED WHITE FLOOR AREA:1.53 million sq. feet (2030)
MARKET SIZE – UTILIZED RACKS: 30.38 thousand units (2030)
MARKET SIZE – UTILIZED IT POWER CAPACITY: 320 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
New Zealand Data Center Colocation Market Overview
New Zealand is an emerging colocation data center market in Asia-Pacific, with over 33 operational facilities spread across major cities such as Auckland, Christchurch, Wellington, and Hamilton. Auckland stands out as a prime location due to strong digital infrastructure, reliable connectivity, and ongoing digitalization efforts, hosting nearly half of the country’s data center capacity.
The market’s occupancy rate is expected to rise sharply, surpassing 94% during the forecast period, fueled by growing demand from AI, big data, IoT adoption, and cloud expansion. While traditional sectors like telecom, government, and enterprise are gradually shifting workloads to the cloud, the cloud segment itself will remain a major driver of colocation demand through 2030.
Increasing foreign investment and the entry of hyperscale players are driving the need for larger facilities, which is putting upward pressure on industrial land prices. To meet rising AI workloads, operators are investing in high-performance GPUs to upgrade traditional CPU clusters and deliver greater processing power.
Sustainability is also a key priority. New Zealand has committed to cutting carbon emissions by 50% by 2030 and achieving carbon neutrality by 2050. Colocation developments are increasingly powered by renewable energy, with ongoing expansions approved to support the country’s green goals and the industry’s shift toward net-zero operations.
New Zealand Advances AI Adoption, Driving Growth of Next-Generation Data Centers and Sustainable Cooling Technologies
New Zealand is rapidly embracing AI and digitalization, strengthening its position as a leader in cloud computing, advanced data centers, and high-performance supercomputing for critical applications like climate modeling. In August 2024, the National Institute of Water and Atmospheric Research (NIWA) unveiled a $12.2 million supercomputer with up to three times more processing power, designed to enhance climate forecasting and handle complex AI workloads.
As AI adoption expands across industries to drive innovation and operational efficiency, demand for next-generation, AI-ready data centers is rising sharply. This shift calls for robust, secure, and energy-efficient infrastructure, alongside advanced liquid cooling technologies capable of supporting high-density computing while reducing environmental impact. New Zealand’s continued investment in AI, sustainability, and renewable energy solutions signals strong growth opportunities for modern data center development, ensuring the country remains at the forefront of digital transformation.
New Zealand Data Center Colocation Market Recent News
- In February 2024, Spark Digital planned to develop a 10-MW data center in Auckland’s North Shore, with potential for further expansion to meet rising demand.
- In 2025, Spark Digital has also planned to expand its core and shell IT capacity by expanding its three existing data centers’ capacity to around 86 MW and developing a new data center facility, North Shore Data Center, with an IT capacity of around 40 MW, of which approx. 10 MW will be installed in the construction of its Phase-1.
IoT and Big Data Expansion Strengthens New Zealand’s Data Center Market
The rapid expansion of Internet of Things (IoT) and Big Data technologies is reshaping how organizations manage physical assets, generate insights, and scale operations. This surge in connected devices and real-time analytics is creating unprecedented volumes of data, driving demand for advanced, scalable data center infrastructure.
Supported by strong government initiatives for digital transformation and sustainable energy, New Zealand is attracting global tech companies seeking a strategic, data-ready environment. The February 2025 partnership between Braemac and MediaTek highlights this momentum, combining cutting-edge semiconductor technology with established distribution networks to accelerate IoT adoption and unlock new Big Data applications across industries.
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Vendor Landscape
Existing Colocation Operators
- CDC Data Centres
- Spark Digital
- DCI Data Centers
- T4 Group
- Datacom
- Plan B Technology
- Vocus & 2degrees
- DataCentre220
- DataVault – Secure New Zealand Data Centers
- Xtreme Networks
- CCL
- Chorus
- Umbrellar Technology Group
- Caduceus Systems
- Vector Fibre
- Enable Fibre Broadband
- Localhost
New Operators
- DataGrid
- Goodman
- NEXTDC
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Key Questions Answered in the Report:
- What is the count of existing and upcoming colocation data center facilities in New Zealand?
- How much MW of IT power capacity is likely to be utilized in New Zealand by 2030?
- What factors are driving the New Zealand data center colocation industry?
- Who are the new entrants in the New Zealand data center industry?
What’s Included New Zealand Data Center Colocation Market Report? This report provides a transparent research methodology and detailed insights into New Zealand’s data center colocation market. It covers market size by utilized white floor area, IT power capacity, racks, and occupancy rates, comparing Core & Shell, Installed, and Utilized capacities. It analyzes the current industry landscape, forecasts demand and growth, and examines colocation demand across sectors, sustainability trends, and cloud operations. It highlights existing and upcoming submarine cables, cloud on-ramps, and third-party facilities (33 existing, 10 upcoming across 5+ cities). It includes detailed revenue forecasts for retail and wholesale colocation (2024–2030), pricing trends, competitive share analysis, and an overview of each operator’s facilities, capacity, and location.
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