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New Zealand to Expand Giant Data Centres in Auckland by 2024

A global cloud computing services provider intends to invest $7.5 billion in the construction of a cluster of massive data centres in Auckland, which will open in 2024. The Minister for the Digital Economy and Communications welcomed the global cloud computing services provider’s decision to establish a Cloud Region on New Zealand’s shores, which will boost the country’s growing digital sector and provide a vote of confidence in the country’s economic recovery.

The global cloud computing services provider’s decision to establish a New Zealand Cloud Region was made through the company’s independent due diligence and is not a government procurement.

Cloud-based technologies are generally accepted currently as the now to work and innovate digitally. Cloud capabilities will play a significant role in the country’s future Digital Economy, Digital Public Service and Cyber plans.

“The global cloud computing services provider is the second major global tech provider to invest heavily in establishing a Cloud Region in New Zealand, bringing with it new jobs, exciting new opportunities for the digital sector, and further acceleration to our economic recovery from COVID-19,” said Minister for the Digital Economy and Communications

Though New Zealand may be a small, island nation a long way from traditional markets, the borderless digital world continues to present them with new innovative economic opportunities, added the minister. This investment, estimated to be around $7.5 billion, demonstrates the international business community’s strong belief in New Zealand’s economy. Despite the challenges that all communities and businesses face around the world, New Zealand’s economic stability continues to create appealing investment opportunities.

The move is expected to create job opportunities for other industries like construction and bring long term benefits. The ICT sector and local innovators are expected to significantly grow into the future.

The announcement means that the government, local businesses and communities in Aotearoa will soon have access to the scale and security of two of the world’s largest cloud service providers. Nonetheless, the government places a high value on protecting citizens’ data and privacy. Onshore Cloud facilities provide greater control over New Zealand’s data because it is stored in New Zealand, where the laws and protections apply.

“This is a step forward for New Zealand’s digital maturity, as we all increasingly adjust to the increasingly digital world,” the Minister for the Digital Economy and Communications said.

OpenGov Asia reported that the shortage of cloud skills in New Zealand is already well known. Demand for skills to manage cloud environments has outstripped supply and the launch of the new data centre region will create additional demand.

With these recent expansions of cloud services, the company believes that tech developers will increasingly turn to public cloud services to create new technology products and services to benefit businesses and consumers. The more people with cloud skills, the more the country will benefit.

Accordingly, reports say that New Zealand needs to open its arms when it comes to new technology, with one industry expert saying that the country is not coping with enough change.

Experts say that New Zealand needs to embrace technology and not treat it as a threat. More and faster technology adoption will open opportunities to improve New Zealanders’ living standards, they added. Embracing technology implies supporting people who are less able to adjust, preparing young people for the future and setting policies and institutions that encourage the entry and uptake of new knowledge, processes, goods, and services by firms. A growing number of organisations believe in the important role that technology will have to help create a prosperous, safe, and sustainable New Zealand for the future.

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