New Zealand Data Center Market New Zealand Data Center Market C A G R By T
Dublin, Feb. 19, 2024 (GLOBE NEWSWIRE) -- The "New Zealand Data Center Market Size & Share Analysis - Growth Trends & Forecasts Up To 2029" report has been added to ResearchAndMarkets.com's offering.
The data center landscape in New Zealand is undergoing a dramatic transformation, with market analytics predicting a robust compound annual growth rate (CAGR) of 17.43%. This surge is being powered by increasing investments from both domestic and global tech giants, anticipating the country's move towards a more digitally-driven economy.
This industry analysis highlights the expected steady climb in IT load capacity, which could see figures reaching 354.2 MW by the year 2029. Additionally, data center raised floor space is forecasted to hit the 0.8 million sq. ft mark, with the total number of installed racks projected at 36,870 units within the same timeline. Notably, Auckland is set to dominate, housing the majority of installed racks and standing as the top hub for data centers in the country.
On the forefront of this expansion are cloud services and colocation service providers, including major players such as Microsoft and AWS. Investment in the region by such entities is bolstering the capacity and technical prowess of data centers across New Zealand.
The market trends suggest a significant pivot towards Tier 3 and Tier 4 data center facilities, aligning with the global demand for uninterrupted and reliable business services. Tier 3 data centers, which reached an IT load capacity of 47.03 MW in 2022, are expected to experience a CAGR of 5.63%, achieving a capacity of 69.03 MW by 2029. Tier 4 facilities, on the other hand, are on an even steeper trajectory, with a predicted CAGR of 31.53%, highlighting the country's commitment to the highest level of operational reliability and resilience.
The shift towards these highly advanced data centers is largely driven by the unprecedented rise in online activity and digital services stemming from the global pandemic, which saw a 47% increase in internet traffic in the year 2020 alone. The amplification of corporate remote work, online education, and entertainment platforms has created a critical need for data infrastructures that can support high-availability services round-the-clock.
Moreover, emerging technological integrations such as 5G rollouts, along with the digitization of healthcare and government services, are setting the stage for further expansion and sophistication of Tier 3 and Tier 4 data center facilities in the Asia-Pacific region, including New Zealand.