New Zealand Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

New Zealand Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The New Zealand Data Center Market is projected to register a CAGR of 17.43%

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market in New Zealand may grow steadily and reach 354.2 MW by 2029.
• Raised Floor Space: The country's total raised floor area is expected to reach 0.8 million sq. ft by 2029.
• Installed Racks: The country's total number of installed racks may reach 36,870 units by 2029. Auckland is expected to house the maximum number of racks by 2029.
• DC Facilities: The growing demand for cloud and colocation services in New Zealand has boosted investments by Microsoft, AWS, and other hyper-scale service providers. Auckland is New Zealand's premier data center hub, hosting approximately 50% of the country's data centers.
• Leading Market Player: The company operates four data centers in the country, one each in Auckland, Wellington, Christchurch, and Hamilton. The Kapua facility at Hamilton, the biggest data center, provides colocation services across an IT load capacity of 14 MW on a floor space area of 30,000 sq. ft.

New Zealand Data Center Market Trends

Tier 3 is the largest Tier Type

• Tier 1 and Tier 2 facilities are losing demand due to their inability to meet the growing uninterrupted business services. A growing number of global companies are creating business continuity services and are gradually shifting priority to Tier 3 and 4 data centers.
• The Tier 3 sector in the New Zealand data center market reached an IT load capacity of 47.03 MW in 2022 and is expected to register a CAGR of 5.63% to reach a capacity of 69.03 MW by 2029. Increased investments in the building affect data center infrastructure and technological advancements. It is expected to create lucrative opportunities for market growth by 2029.
• Tier 4 data centers are expected to be the fastest-growing segment, with a CAGR of 31.53%. The segment amounted to just 2 MW in 2022 and is expected to touch 13.62 MW by 2029.
• Pandemic-led demand for video conferencing, online schooling, entertainment, social networking, and platforms to support remote working led to a 47% Y-o-Y surge in global internet traffic in 2020, eclipsing initial forecasts of 28%. These services need data center facilities with minimum times and 24/7 support, which Tier 3 and 4 facilities can offer.
• Other major demand drivers include global technology services companies catering to growing corporate requirements for remote working and other virtual arrangements. The wider adoption of 5G and further digitalization of healthcare and other government services will be the primary demand drivers of Tier 3 and Tier 4 data center growth within Asia-Pacific.

New Zealand Data Center Industry Overview

The New Zealand Data Center Market is fairly consolidated, with the top five companies occupying 83.13%. The major players in this market are Canberra Data Centers, Datacom Group Ltd, Plan B Limited, Spark New Zealand Limited and T4 Group (Advanced Data Centres) (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support