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.
The New Zealand Data Center Industry Overview indicates a market largely dominated by a handful of key operators, with the top five companies holding 83.13% of the market share. These include, but are not limited to, notable service providers that operate multiple data centers across the nation, catering to the substantial demand for versatile and robust data services.
As the industry continues to evolve, the implications for business strategy and infrastructure development are immense, positioning New Zealand as a key player in the Asia-Pacific data center market. The complete analysis, inclusive of detailed market insights and forecasts, contributes significantly to understanding the future of data centers and their impact on businesses and economies.
Key Highlights
- Sizable Growth in IT Load Capacity and Raised Floor Space
- Emerging Dominance of Tier 3 and Tier 4 Data Center Facilities
- Significant Boost in Investments from Global Tech Leaders
- Steep Increase in Demand for Uninterrupted Business Services
- Strategic Development of Data Centers in Auckland as a National Hub
A selection of companies mentioned in this report includes:
- Advantage Computers Limited
- Canberra Data Centers
- Chorus
- Datacom Group Ltd.
- DTS New Zealand Limited
- HD Net Limited
- Mikipro Limited
- Plan B Limited
- SiteHost NZ
- Spark New Zealand Limited
- T4 Group (Advanced Data Centres)
- Vocus Group Limited
For more information about this report visit https://www.researchandmarkets.com/r/eqkyvd
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