New Zealand Data Center Market - Forecast(2024 - 2030)

Report Code: ITR0478 Report Format: PDF + Excel

New Zealand Data Center Market Overview:

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 New Zealand data center market exhibited steady growth driven by an increasing need for cloud services, data storage, and digital transformation. Although smaller in scale compared to larger nations, it displayed potential for future expansion. Leading providers such as Datacom, Vocus, and Spark offered a diverse range of services, spanning from colocation to cloud hosting.

The growth is primarily propelled by 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. To meet the escalating demand, New Zealand has been proactively investing in upgrading its connectivity infrastructure. This includes the development of undersea cable connections that link New Zealand to both Australia and the United States. These efforts have played a pivotal role in enabling smooth data transmission and diminishing latency, thereby strengthening the growth potential of the regional data center market.

Market Snapshot:

New Zealand Data Center Market- Report Coverage:

The “New Zealand Data Center Market Report - Forecast (2023-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the New Zealand Data Center Market.



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 User

  • BFSI

  •  IT and Telecom

  •  Media and Entertainment

  •  Retail and E-Commerce

  •  Manufacturing

  •  Healthcare

  • Government

  •  Education

  •  Others

By Geography

  • Global

  •  APAC

  •  New Zealand


COVID-19 / Ukraine Crisis - Impact Analysis:  

● 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.

Key Takeaways:

● Colocation Provider Registers the Highest Share in New Zealand Data Center Market

According to the New Zealand Data Center Market, the Colocation Provider segment dominates the market in 2022 with the share of 29%. Colocation providers play a crucial role in the data center market by offering businesses and organizations secure and flexible solutions for hosting their IT infrastructure. Colocation providers operate data center facilities that are designed to house servers, networking equipment, and other critical IT infrastructure. These facilities are equipped with redundant power sources, advanced cooling systems, and robust physical security measures to ensure uptime and data protection. Data center colocation facilities provide businesses with fast and dependable internet connectivity through high-speed, redundant networks.

● Small Data Center is the Fastest Growing Segment in the New Zealand Data Center Market

According to the New Zealand Data Center Market, the Small Data Center segment is estimated to grow with the highest CAGR of 7% over the forecast period 2023-2030. Energy efficiency efforts and attention for data centers have historically focused on larger data centers. Despite their comparatively small size, small data centers (defined as server closets, rooms, and localized data centers under 5,000 square feet of computer floor) have significant energy savings potential. Small data centers are compact compared to large-scale data centers. They may occupy a few hundred square feet to a couple of thousand square feet of floor space. The government promotes cloud usage through initiatives such as the Government Cloud Strategy and the launch of the New Zealand Government Common Capability Cloud (GCCC) program. One of the primary applications of small data centers is to centralize their IT infrastructure, including servers, storage, and networking equipment. This helps them manage their digital assets efficiently and improve data security.

• 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.

• Exponential Data Growth which requires an Efficient Storage.

Managing exponential data growth requires substantial investments in data center infrastructure, including servers, storage devices, networking equipment, and cooling systems. Data center operators must continually expand and upgrade their facilities to accommodate growing data storage needs. Building and maintaining data center infrastructure is costly. As data volumes increase, so do the capital and operational expenses associated with acquiring, configuring, and maintaining storage hardware. This can lead to higher service costs for customers. Scalability is a critical concern in data center operations. Data centers must be able to scale their storage capacity rapidly to meet the demands of data growth. Ensuring that new storage resources can be seamlessly integrated without causing disruptions is a technical and logistical challenge.

Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the New Zealand Data Center Market. The top 10 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

Scope of 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

1. New Zealand Data Center Market- Overview
    1.1. Definitions and Scope
2. New Zealand Data Center Market- Executive Summary
3. New Zealand Data Center Market- Comparative Analysis
    3.1. Company Benchmarking - Key Companies
    3.2. Financial Analysis - Key Companies
    3.3. Market Share Analysis - Key Companies
    3.4. Patent Analysis
    3.5. Pricing Analysis
4. New Zealand Data Center Market- Start-up Companies Scenario 
    4.1. Key Start-up Company Analysis by
        4.1.1. Investment
        4.1.2. Revenue
        4.1.3. Venture Capital and Funding Scenario
5. New Zealand Data Center Market– Market Entry Scenario Premium 
    5.1. Regulatory Framework Overview
    5.2. New Business and Ease of Doing Business Index
    5.3. Case Studies of Successful Ventures
6. New Zealand Data Center Market- Forces
    6.1. Market Drivers
    6.2. Market Constraints
    6.3. Porter's Five Force Model
        6.3.1. Bargaining Power of Suppliers
        6.3.2. Bargaining Powers of Customers
        6.3.3. Threat of New Entrants
        6.3.4. Rivalry Among Existing Players
        6.3.5. Threat of Substitutes
7. New Zealand Data Center Market– Strategic Analysis
    7.1. Value Chain Analysis
    7.2. Opportunities Analysis
    7.3. Market Life Cycle
8. New Zealand Data Center Market– by Provider Type (Market Size – $Million/$Billion) 
    8.1. Enterprise
    8.2. Colocation Provider
    8.3. Cloud Service Provider
    8.4. Edge Data Center
    8.5. Hyperscale Data Center
    8.6. Micro Data Center
    8.7. Container Data Center
9. New Zealand Data Center Market– by Tier Standards (Market Size – $Million/$Billion)
    9.1. Tier 1
    9.2. Tier 2
    9.3. Tier 3
    9.4. Tier 4
10. New Zealand Data Center Market– by Data Center Size (Market Size – $Million/$Billion)
    10.1. Small Data Center
    10.2. Medium Data Center
    10.3. Large Data Center
11. New Zealand Data Center Market – by End Use (Market Size – $Million/$Billion) 
    11.1. BFSI
    11.2. IT and Telecom
    11.3. Media and Entertainment
    11.4. Retail and E-Commerce
    11.5. Manufacturing
    11.6. Healthcare
    11.7. Government
    11.8. Education
    11.9. Others
12. New Zealand Data Center Market– Entropy
13. New Zealand Data Center Market– Industry/Segment Competition Landscape  
    13.1. Market Share Analysis
       13.1.1. Market Share by Provider Type – Key Companies
    13.2. Competition Matrix
    13.3. Best Practices for Companies
14. New Zealand Data Center Market– Key Company List by Country Premium  
15. New Zealand Data Center Market- Company Analysis
    15.1. AWS
    15.2. Microsoft
    15.3. Google
    15.4. Spark New Zealand
    15.5. Datacom Group
    15.6. Vocus Group
    15.7. Vector Communications
    15.8. Plan B
    15.9. Data Vault
    15.10. Xtreme Networks 

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The New Zealand Data Center Market is projected to grow at 6.1% CAGR over the forecast period 2023-2030.

Global New Zealand Data Center Market size is estimated to be $0.9 billion in 2023 and is projected to reach $1.4 billion by 2030.

The leading players in the New Zealand Data Center Market are AWS, Microsoft, Google, Spark New Zealand, Datacom Group, Vocus Group, Vector Communications, Plan B, Data Vault, Xtreme Networks