New Zealand Data Center Market is estimated to grow at a CAGR of 6.1% over the forecast period (2023-2030) and reach US$1.4 billion by 2030, from around US$0.9 billion in 2023. The expanding adoption of data center services, driven by businesses’ endeavors in digital transformation, escalating demands for data storage, and the pervasive adoption of cloud computing are the primary market drivers for the forecast periodfinds IndustryARC in its recent report, titled “New Zealand Data Center MarketSize, Share & Trends Analysis Report–By Provider Type, (Enterprise, Colocation Provider, Cloud Service Provider, Edge Data Center, Hyperscale Data Center, Micro Data Center, Container Data Center), By Tier Standards, (Tier 1, Tier 2, Tier 3, Tier 4), By Data Center Size, (Small Data Center, Medium Data Center, Large Data Center), By End Use, (BFSI, IT and Telecom, Media and Entertainment, Retail and E-Commerce, Manufacturing, Healthcare, Government, Education, Other)- Global Opportunity Analysis & Industry Forecast, 2023-2030.

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New Zealand Data Center Market2023-2030: Scope of the Report

Report Metric


Base Year Considered


Forecast Period




Market Size in 2030

$1.4 billion

Segments Covered

Provider Type, Tier Standards, Data Center Size, and End Use

Key Market Players

Companies in this industry are listed below:

  1. AWS
  2. Microsoft
  3. Google
  4. Spark New Zealand
  5. Datacom Group
  6. Vocus Group
  7. Vector Communications
  8. Plan B
  9. Data Vault
  10. Xtreme Networks

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New Zealand Data Center MarketReport – Key Takeaways:

Edge data centersis the Fastest Growing Segment in the New Zealand Data Center Market

Edge data centerssegment is estimated to grow with the highest CAGR of 8%over the forecast period 2023-2030. Edge data centers are a vital component of the data center market in NewZealand and around the world. They serve a specific role in bringingcomputing and data storage closer to end-users, devices, andapplications.Edge data centers are strategically located close to where datais generated and consumed. This proximity reduces latency, ensuring fasterresponse times for applications and services.Edge data centers in the New Zealand data center market serve variousapplications, catering to the growing demand for low-latency, high-performance computing and data processing in industries like manufacturingand logistics, edge data centers process data from industrial IoT (IIoT)devices to optimize production processes, monitor equipment health, andensure safety.Governments often allocate resources to enhance network infrastructure,particularly 5G connectivity, to empower emerging technologies andapplications. Edge data centers play a pivotal role in leveraging the potentialof these advanced networks.

BFSIregisters the highest share in the New Zealand Data Center Market

In the New Zealand Data Center Market Analysis, theBFSIsegment dominates the market in 2022 with the share of 22%. The Banking, Financial Services, and Insurance (BFSI) sector in New Zealand has experienced a profound transformation driven by the rapid advancement of information technology. In recent years, digitization has become an integral part of the operational strategy of BFSI institutions, shaping the way they engage with customers, managing financial data, and ensuring the security and efficiency of their services. The BFSI sector’s digital revolution has paved the way for cloud computing and data centers, which have now emerged as the cornerstone of its operations. The growing need for digital services and the management of vast volumes of sensitive financial data underscore the critical role played by data centers in this industry.

Adoption of New Technologies which led to Digital Transformation Initiatives

The adoption of digital technologies and the ongoing digital transformation efforts by businesses and government entities play a crucial role in driving the demand for data center services. As organizations modernize their IT infrastructure, they require robust and scalable data center facilities to support their digital operations. The shift towards cloud computing services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), has enabled businesses to scale their operations quickly, reduce IT infrastructure costs, and access advanced technologies without heavy upfront investments. New Zealand’s telecommunications companies have been rolling out 5G networks, enabling faster and more reliable wireless connectivity. This technology supports IoT applications, smart cities, and improved mobile experiences which is driving the Data Center market.

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Key Opportunity Analysis:

Focus on Enhanced Efficiency Using AI and Deep Learning

The integration of AI and ML technologies presents a significant opportunity to enhance the efficiency of data centers,ultimately leading to reduced power consumption and improved operational performance.A compelling example of this potential is Google’s collaboration with AI company DeepMind, where an AI algorithmwas developed to optimize power management and cooling systems.This AI leverages deep learning techniques to identify the most effective framework and cooling infrastructure, resulting in a remarkable 40% reduction in cooling-related power costs at Google’s data centers. Google Cloud’s announcement to bring a new cloud region to New Zealand further emphasizes the country’s growing importance in the global digital landscape. This region will empower Kiwi businesses with the choice to keep their data onshore, ensuring data sovereignty while fostering digital transformation efforts with speed, security, and scalability at the core.

Adoption of Software-Defined Data Centers (SDDCs)

Moving to an SDDC model allows data centers to optimize infrastructure usage. By segmenting servers and employingvirtualization technologies, multiple users can be accommodated on a single server. This consolidation reduces hardware costsand operational expenses, which is an opportunity to enhance cost-efficiency.SDDCs enable scalability by distributing workloads across multiple servers. This scalability ensures that resources can be easilyexpanded or contracted based on demand, providing an opportunity to efficiently accommodate fluctuating workloads andchanging customer needs.SDDCs function in a way similar to cloud models, allowing service providers to allocate data storage and processing power on-demand. This flexibility aligns with the growing trend of offering services on an as required basis, providing an opportunity tomeet customer demands more effectively

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The Report also Covers the Following Areas:

  • New Zealand Data Center MarketSize and Forecast
  • New Zealand Data Center MarketTrends
  • New Zealand Data Center MarketAnalysis by Provider Type

New Zealand Data Center Market2023-2030: Key Highlights

  • CAGR of the market over the forecast period 2023-2030
  • Value Chain analysis of key stake holders
  • Detailed analysis of market drivers and opportunities over the forecast period
  • New Zealand Data Center Market size estimation and forecast
  • Analysis and predictions on end users’ behavior and upcoming trends
  • Competitive landscape and Vendor market analysis including offerings, developments, and financials
  • Comprehensive analysis of challenges and constraints in the New Zealand Data Center Market.

 Covid and Ukrainian Crisis Impact:

The shift to remote and hybrid work models, prompted by global events such as the COVID-19 pandemic, indeed accelerated the demand for robust data center infrastructure in New Zealand. This surge was fueled by the essential necessity to facilitate remote employee support and ensure secure access to vital company resources. Moreover, the rapid adoption of remote work and collaboration tools, such as video conferencing platforms, project management software, and virtual private networks, became integral elements driving this heightened demand for data center capabilities. Furthermore, the increased reliance on cloud services, the proliferation of IoT (Internet of Things) devices, and the growing demand for digital transformation initiatives have also contributed significantly to the burgeoning requirements within New Zealand’s data center market. These factors collectively highlight the necessity for enhanced infrastructure, data security, and connectivity solutions, propelling the ongoing evolution and expansion of the country’s data center landscape.

The Russian invasion of Ukraine in 2023 had a negative impact on the New Zealand data center market. The geopolitical tensions and subsequent global economic repercussions significantly disrupted various industries, causing uncertainty and a cautious approach toward investments. In this climate of geopolitical instability, businesses in New Zealand, as elsewhere, exercised prudence, leading to a slowdown in technology spending and infrastructure expansions. The geopolitical turmoil created an atmosphere of caution among businesses, impacting decision-making processes regarding technology investments. This cautious approach, coupled with potential economic ramifications and supply chain disruptions, led to a delay or reevaluation of data center expansion plans and technology upgrades within New Zealand. The increased global tension likely contributed to a more conservative business environment, influencing the overall growth trajectory of the country’s data center market during that period.

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List of Key Market Players in New Zealand Data Center Market:

The key companies profiled in the New Zealand Data Center MarketReport are listed below:

  1. AWS
  2. Microsoft
  3. Google
  4. Spark New Zealand
  5. Datacom Group
  6. Vocus Group
  7. Vector Communications
  8. Plan B
  9. Data Vault
  10. Xtreme Networks
  11. IBM
  12. Oracle
  13. Dimension Data
  14. Equinix
  15. Vodafone

Related Reports:

Data Center Market– The Data Center Market size is estimated to reach $418 billion by 2030, growing at a CAGR of 9.6% over the forecast period 2023-2030. The advantages of Data Centers include hyper-scalability, sustainability and automation for modern business processes. It is set to propel the demand for Data Centers over the forecast period.

Data Center as a Service Market – Data Center As a Service Market size is forecast to reach $298.5 billion by 2026, estimated to grow at a CAGR of 12.7% during 2021-2026. The increasing use of data storage portable devices in order to retrieve data irrespective of time and location &the rising demand for colocation facilities and enterprise data storage are escalating the growth of the market.

Modular Data Center Market – Modular Data Center Market is forecast to reach $42 billion by 2026, growing at a CAGR of 16.8% from 2021 to 2026. Modular data center is a portable method of deploying data center networking equipment capacity. It can be placed where the data is required and provides scalable converged infrastructure with cooling capacity.

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