New Zealand Data Center Colocation Market - Supply & Demand Analysis 2025-2030

The New Zealand Data Center Colocation Market was valued at USD 757.36 million in 2024, and is projected to reach USD 949.75 million by 2030, rising at a CAGR of 3.84%.

New Zealand is a developing and one of the emerging colocation data center markets in Asia. The country consists of over 33 existing colocation data center facilities across several locations, such as Auckland, Christchurch, Wellington, Hamilton, and others. Auckland is one of the prominent locations in the New Zealand data center colocation market, which is preferred by several colocation companies because of its digitalization efforts, efficient network infrastructure, and enhanced digital connectivity. The city consists of around 16 existing data center facilities, operated by several colocation companies, such as Datacom, Chorus, Spark Digital, CDC Data Centres, and others.

The occupancy rate in the New Zealand data center colocation market is expected to increase significantly in the forecast period, surpassing over 94% due to the increasing demand for colocation services in the country. The presence of several cloud providers, increasing adoption of AI, big data, and IoT, will increase the need for the development of several new colocation data center facilities across multiple locations in New Zealand in the upcoming years.

The demand for colocation services in New Zealand is generated by sectors such as telecom, cloud, government, enterprise, and others. This demand from several sectors is expected to decline in the forecast period as the businesses operating under such sectors are expected to migrate their workloads to the cloud for data storage and processing. However, the cloud sector will contribute significantly to generating the demand for colocation services by 2030.

The foreign investments, including the investments for the development of new colocation data centers, are regulated by the New Zealand Overseas Investment Office. This office grants consents for overseas investments involving New Zealand assets, like, land acquisitions and asset development investments. The industrial land prices in New Zealand are expected to increase in the forecast period due to the entry of hyperscale companies, such as Microsoft and Amazon Web Services, into the New Zealand data center colocation market. These operators require large land for developing their data centers, which is expected to increase real estate prices due to the increased demand.

As the demand for AI workloads is increasing rapidly in New Zealand, the colocation companies are investing to replace the traditional CPU clusters in their facilities with advanced GPUs, such as NVIDIA H100, L40S, and A100, which facilitate complex calculations and AI workloads efficiently. Furthermore, the country is committed to reducing its carbon emissions by 50% by 2030 and to achieving carbon-neutrality by 2050 to mitigate its environmental impact. The government of the country is making several strides to achieve the country’s sustainability target through several initiatives. For instance, the New Zealand Overseas Investment Office has approved the expansion of Datagrid’s renewable energy-powered data center park in July 2024.

Several colocation operators, such as CDC Data Centres, NEXTDC, DCI Data Centers, Datacom, and others, which operate or have been involved in the development of their colocation data centers across New Zealand, are committed to achieving carbon-neutrality across their data centers by 2030, aligning with the country’s broader sustainability goals

WHAT'S INCLUDED?

• Transparent research methodology and insights on the industry's colocation of demand and supply.
• The market size is available in terms of utilized white floor area, IT power capacity, and racks.
• The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy %.
• The study of the existing New Zealand data center industry landscape and insightful predictions about industry size during the forecast period.
• An analysis of the current and future colocation demand in New Zealand by several industries.
• Study on the sustainability status in the country
• Analysis of current and future cloud operations in the country.
• Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the country.
• Snapshot of existing and upcoming third-party data center facilities in New Zealand
  • Facilities Covered (Existing): 33
  • Facilities Identified (Upcoming): 10
  • Coverage: 5+ Cities
  • Existing vs. Upcoming (White Floor Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in New Zealand
  • Colocation Market Revenue & Forecast (2024-2030)
  • Retail Colocation Revenue (2024-2030)
  • Wholesale Colocation Revenue (2024-2030)
  • Retail Colocation Pricing along with Addons
  • Wholesale Colocation Pricing along with the pricing trends
• An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the New Zealand data center colocation market.
• Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
• The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

• Real Estate Investment Trusts
• Construction Contractors
• Infrastructure Providers
• New Entrants
• Consultants/Consultancies/Advisory Firms
• Corporate & Government Agencies

The report includes:

• Colocation Supply (MW, Area, Rack Capacity)
• Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
• Colocation Revenue (Retail & Wholesale Colocation Services)
• Competitive Scenario (Share Analysis by Revenue & MW Capacity)

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

KEY QUESTIONS ANSWERED

1. What is the count of existing and upcoming colocation data center facilities in New Zealand?
2. How much MW of IT power capacity is likely to be utilized in New Zealand by 2030?
3. What factors are driving the New Zealand data center colocation industry?
4. Who are the new entrants in the New Zealand data center industry?