3:21 pm today

Data centres add estimated $16.5 billion to annual economy new research shows

3:21 pm today
Data storage and cloud computing computer service business concept, showing a server room interior in a data centre.

Data centres add an estimated $16.5b to New Zealand's annual economy, an NZTech study shows. File picture. Photo: 123rf

Latest research indicates power-hungry data centres contribute an estimated $16.5 billion to the annual economy, and support a further $76.5b of broader digital services offered across industry sectors.

The NZTech tech study estimates the combined $93b in economic activity positioned New Zealand as global leader in sustainable digital infrastructure and a driver of high value jobs.

"Data centres are the invisible engines of our digital world, powering everything from online banking and healthcare to the apps we use daily and the cloud services our businesses rely on. They are fundamental to the smooth running of our modern lives," NZTech chief executive Graeme Muller said.

The report Empowering Aotearoa New Zealand's Digital Future - Our National Data Centre Infrastructure said there were 56 operational data centres, some of which were small-sized or large by global scale.

Another 20 more were planned or under construction.

The sector directly employed more than 1000 people and supported 6800 additional roles.

"This workforce is forecast to double by 2030, with up to 15,000 construction jobs expected as new centres are built," the report said.

The research also focused on sustainable data centre development, which were rapidly transitioning to 100 percent renewable energy sources.

"This commitment to sustainability is driving major investment in clean energy projects across the country, with data centre operators partnering with renewable energy providers to expand New Zealand's green energy capacity," it said, adding average power usage was well below the global average.

"Modern data centres are 54 percent more energy efficient than legacy on-premise server rooms."

The report forecasts a further $10b in data centre investment over the next decade, which was expected to generate tax revenue to support public services, while boosting regional growth and creating new digital hubs across the country.

"To fully realise the benefits and manage the challenges of rapid sector growth, collaborative action between government and industry is essential," it said.

The report recommends a Data Centre Industry Ministerial Advisory Group be established to bring together data centre operators, electricity providers and government policy makers.

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