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AWS Launches Cloud Services in New Zealand with $4.4B Investment

Prime Highlights 

  • Amazon Web Services (AWS) has launched its cloud services in New Zealand with a $4.4 billion investment to build local data centres. 
  • The project is expected to create over 1,000 full-time jobs annually and inject nearly NZ$10.8 billion into the economy. 

Key Facts 

  • The new Asia Pacific (New Zealand) Region will allow local firms like Xero and Kiwibank to host workloads and store data locally with lower latency. 
  • Prime Minister Christopher Luxon hailed the project as a major step for the economy, despite delays since its 2021 announcement. 

Background 

Amazon Web Services (AWS) has officially launched its cloud services in New Zealand and confirmed a $4.4 billion (NZ$7.5 billion) investment in building data centres across the country. Initially announced in 2021, the long-awaited project will help to provide over 1,000 full-time employees annually and inject approximately NZ$10.8 billion into the national economy.

AWS said the new Asia Pacific (New Zealand) Region will help businesses of all sizes adopt cloud services, speed up digital transformation, and create new opportunities in sectors ranging from banking to software. The company said local customers, including Xero and Kiwibank, will now have a “home-grown option” to host workloads, store data locally, and deliver services with lower latency, enabling faster development of cloud-based products.

The government has been pushing for foreign investment to revive the economy after a deep recession last year. It has already eased planning laws and changed visa rules to attract global firms and entrepreneurs.

Prime Minister Christopher Luxon, who was present at the launch event in Auckland, was happy with the move by Amazon. He acknowledged the project faced delays since its first announcement but stressed that the live launch represents a major step. This is what we would like to see a lot more of because it creates employment, Luxon said.

Another thing which Luxon observed was that the cost of construction in New Zealand was almost 20% more than in Australia, and this was also an incentive to effect changes in the regulations.

Although Amazon has not announced the data centres location, the opening is a positive move towards enhancing the digital infrastructure around New Zealand and bringing more technology-focused investments to the country.