NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Sponsored Stories

Sponsored by Vodafone

Vodafone

Why hyperscale data centres are blossoming in NZ

2 Mar, 2022 11:00 AM
Photo / Getty Images.

Photo / Getty Images.

Sponsored by Vodafone

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

$10 billion being spent in new data centres - Vodafone: "It's a game changer".

They represent an estimated $10 billion-plus in investment and have the potential to change New Zealand economically, technologically and socially – more than 10 new "hyperscale" data centres being built or upgraded, some involving global names like Microsoft and Amazon.

"If you'd told me a couple of years back that big players like Amazon and Microsoft were going to set up big data zones in New Zealand, I don't think I'd have believed you," says Murray Osborne, Head of Vodafone Infrastructure Partners.

Vodafone is playing a key role in this mushrooming of data centres in New Zealand – working with world-class partner Ciena to supply a network and "the pipes" that will carry enormous volumes of data around New Zealand and internationally and inter-connecting the new data centres.

The scale of the new projects is gripping; Osborne has been shown through one of the new centres in North Auckland – CDC Data Centres' Silverdale operation, one of two (the other in Hobsonville) which are scheduled to open in 2022: "I have never been in such a large building; frankly, it was amazing, awesome."

Advertisement
Advertise with NZME.

It's not just the size of the buildings, it's the size of the data operations that is turning heads, known as "hyperscale". There are eight other projects on the way as well as CDC's two. DCI Data Centres is building two on the North Shore at a total cost of about $600m, one of which is slated to be New Zealand's biggest data centre.

Such centres are measured by the amount of power they require at peak operation level. One of the DCI centres is said to be a 40MW plant. Microsoft is building three data centres, there's a Takanini data centre being upgraded to a 10MW facility while Amazon are putting $7.5bn into a cluster (at least three) of data centres which will form an Amazon Web Services (AWS) zone, scheduled to open in 2024.

That list doesn't even include plans for a new, $530m, 60MW data centre in Southland – though funding has yet to be found for a new international fibre cable needed for this to be viable.

There are several motivations for this sudden boom in data centres here. The pandemic has accelerated a boom in cloud computing, or using software and services over the internet. The cloud is a misnomer, of course, as the concept of the cloud in the sky is actually thousands upon thousands of computers housed in giant computer farms.

For businesses and consumers, having data centres in local areas means better performance. It also means banks and government departments don't have to worry about data sovereignty issues that might be an issue if sensitive files are stored in server farms overseas, where different privacy and security laws can apply.

Murray Osborne, Head of Vodafone Infrastructure Partners. Photo / Supplied.
Murray Osborne, Head of Vodafone Infrastructure Partners. Photo / Supplied.

While having local data centres means businesses and consumers will notice less "lag" in things like streaming services and gaming, there is another incentive for the data centres – a big player, the government. Huge data usage by the likes of Internal Revenue, MBIE, Police and Justice are sure to have been figured into the business cases of many of the yet-to-be built data centres.

Osborne says CDC are building their two data centres exactly to the specifications of their large operation in Australia – where they have captured a large percentage of federal government data, including highly sensitive material which is classified all the way from "Confidential" to "highly sensitive", he says.

Government data and the public cloud will likely be transformed, he says, and you don't have to look very far round the world to see other drivers of data centre growth:

Advertisement
Advertise with NZME.
  • Global cloud services are predicted to reach US$1.3 trillion by 2025
  • Globally, 60 per cent of downstream internet traffic is video streaming
  • Every minute, there are 500-plus hours of content uploaded to Youtube
  • The global market for telemedicine is predicted to reachUS$175 billion by 2025
  • Europe added 70 small data centres in 2020, North America 50 and there are now 541 hyperscale data centres globally, with Google and Amazon the biggest players.

"There will also be a big social element," says Osborne. "It won't be long before 50 per cent of the work force will be millennials and they have a work-life balance ethic and really want that flexible, work-from-anywhere ability in their work."

Vodafone's role is encapsulated in a new service – Vodafone Data Centre Connect (DCC). It provides a nationwide fabric, connecting data centres directly to each other, delivering point-to-point connectivity between data centres in New Zealand and public clouds.

It gives the network the highest degree of agility and flexibility with the ability to send any service anywhere in the network, dynamically – but is a competitive and simple commercial construct, one end-to-end product.

"Having secure, reliable and high-performing connectivity services is critical for large data centres, and Vodafone Data Centre Connect is a game-changer in New Zealand," says Osborne. "We've designed this solution with built-in redundancy to secure network availability and result in a decreased failure risk along critical data paths.

"Tapping into Ciena's global expertise, Vodafone Data Centre Connect is designed with security and reliability at the forefront. It's going to be awesome for New Zealand."

For more information, please visit www.vodafone.co.nz/infrastructurepartners.

Save

    Share this article

Advertisement
Advertise with NZME.

Latest from Sponsored Stories

Sponsored Stories

New Zealand campervan holiday?

23 Jun 10:04 PM
Sponsored Stories

Engage and explore one of the most remote places on Earth in comfort and style

23 Jun 12:00 PM
Sponsored Stories

Anzor’s East Tāmaki hub speeds supply

23 Jun 01:36 AM
Sponsored Stories

Why wallpaper works wonders

22 Jun 05:30 PM

Kaibosh gets a clean-energy boost in the fight against food waste

sponsored
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP