NZTech report: Data centres key to NZ's digital future

Thanks to NZTech for this timely and comprehensive report into the NZ data centre landscape which provides a holistic view of various data centre considerations such as demand, electricity use, location & latency, sovereignty & export opportunities. One of the things I find interesting in the report is the high concentration of data centres in the Auckland & Waikato regions, which appears to be primarily on the basis of proximity to consumer and business demand, a workforce that can build and operate data centres, and the need for very low latency between users and data centre applications. Aside from a couple of notable exceptions like the Datagrid New Zealand planned data centre build in Southland, I think we are potentially missing a wider opportunity to leverage some of the key strategic advantages we have in Te Waipounamu, the South Island of NZ. To explain the rationale for this statement: - real world latency on a fibre network is ~1ms per 100km, and Auckland to say Invercargill is ~1200kms so realistically this distance would mean an additional latency of ~10-15ms, which apart from very specific industry use cases is unlikely to create any significant problem, and for overseas users is largely immaterial, esp. if when they are connected via the proposed new southern fibre route to Australia. - Power usage is now one of the largest costs for data centres. South Island has excess generation relative to North, is mostly renewable generation, and has lower transmission losses, esp. at times when NI power demand requires the Cook straight AC/DC/AC conversion. (the report focusses on efficiency of electricity use or PUE factor of the datacentre itself, rather than efficiency of end point usage for every unit generated, which I suspect would drive quite a different number when transmission losses are taken into account.) - South Island generally has lower ambient temp, reducing cooling demand, which in turn reduces electricity demand - Significant water reserves available which are also required for cooling - A lower population and industrial base with less growth than Auckland and Hamilton means less competition for electricity, especially at peak times as demand grows through electrification of the economy and households. - Secure hydro generation assets and sites that would make for potential data centre sites with grid proximity, which would also enable smart dual use of data centre battery infrastructure for grid requirements. - The tech workforce rationale is an interesting aspect - apart from the obvious construction requirements, most data centres now have very few onsite staff, so the majority of this workforce could be practically located anywhere in the country. https://lnkd.in/gzpbRczF

Yesterday afternoon, I attended the AI-Ready Infrastructure for IMPACT - Powering Vietnam's Future as part of the Innovation Day Hanoi 2025, which was organised by the French company Schneider Electric. The 2 keynote talks were delivered on: 1. Closing the Green IMPACT Gap: digitally enabled sustainability, Mr XingJian Pang, President, Schneider Electric East Asia 2. The AI Frontier: Transforming Business Dynamics, Mr Mai Lam Dong, Cluster President, Schneider Electric Vietnam & Cambodia In addition, the main panel discussion focused on digital infrastructure as a key element of Vietnam's emerging and competitive digital infrastructure roadmap for the future. The 5 speakers included: Mr Tran Van Khai, Deputy Chairman of the National Assembly's Committee for Science, Technology and Environment Mr XingJian Pang, Zone President, Schneider Electric East Asia Mr Tran Thanh Hai, Head of Energy and Infrastructure, Vinacapital Mr Pham Nguyen, EcoDC (building data centres) Mr Pham The Truong, CEO of NGS Consulting Some takeaways: 1. 4.2x AI power consumption growth in Vietnam from 2023-25 2. 10x more energy is consumed for a ChatGPT query than a simple Google search 3. 51% of companies in Vietnam cite fluctuating energy prices as a key risk to their business 4. Similarly, 51% of companies in Vietnam are currently using AI for energy consumption optimisation. 5. In ASEAN, AI is expected to boost GDP by 15-18% (equivalent to $1 trillion added by 2030) 6. In Vietnam, the AI market's annual growth through 2030 (15.8% CAGR) 7. By 2030, the size of the AI market in Vietnam is predicted to be $1.52 billion 8. Initial AI-driven data centre workload: 4.3 GW (2023) and by 2028 (13.5 - 18 GW) - so AI deployment will bring its own challenges to infrastructure. 9. AI is transforming how we design, operate, and optimise infrastructure - from data centres to smart buildings and resilient grids. But transformation starts with readiness. 10. We heard about how AI-ready infrastructure must be scalable, adaptive, and sustainable 11. The macro tech trends driving this shift - edge computing, liquid cooling, hybrid energy systems 12. Why Vietnam is poised to lead in the global AI wave Great to meet with Mr Romaric Ernst of Schneider Electric on the day. Romaric is based in Singapore but works across the Republic of Korea, Japan, Taiwan and Southeast Asia, including Vietnam.

Industry Report Highlights Urgent Call for Data Centre Sustainability Why this matters: - With global electricity consumption from data centers projected to skyrocket potentially reaching over 2,000 TWh by 2030 as AI demand surges it becomes clear that traditional infrastructure approaches could soon prove unsustainable. - Beyond energy use, the sector’s environmental cost extends to public health: in the U.S., air pollution linked to ballooning data-center operations has already resulted in an estimated $5.4 billion in health-related expenses. Our take: This report delivers a timely wake-up call. Sustainability in data infrastructure isn’t optional—it’s foundational. Operators and policymakers must move beyond incremental improvements to embrace radical efficiency, renewable energy integration, and transparent metrics. The opportunity here isn’t just regulatory compliance—it’s future-proofing digital growth in an era where climate and operational performance are two sides of the same coin. What do you think? With AI and data demand accelerating, will radical sustainability become a competitive edge for data center operators—and what will be most critical to accelerate adoption: regulatory mandates, investment incentives, or public pressure? Read More:- https://lnkd.in/d_NzdmhW #DataCenterSustainability #GreenDataCenters #AIInfrastructure #EnergyEfficiency #ClimateTech #businessnews #businessinsights #businessinsightsjournal #BIJ

AI Infrastructure and Sustainability AI has dramatically increased the demands on data processing infrastructure. New data centers are being built anywhere there is land, power, and water. Old data centers are being upgraded or raised to make space for newer, denser, more powerful data centers. So too is pressure from investors, the public, and government to implement more sustainable solutions. Here's a quick read on this topic... https://lnkd.in/g_i8CfQa

NEOIX PLC Newsroom Update NEOIX Egypt Hyperscale Data Center Receives Government Endorsement as Strategic Digital Infrastructure NEOIX.AI’s landmark 150MW hyperscale data center in Egypt’s New Administrative Capital has received formal endorsement from the Egyptian Ministry of Communications and Information Technology as a cornerstone project for the nation’s digital transformation strategy. Minister Dr. Amr Talaat stated, “This facility represents exactly the type of sustainable, world-class digital infrastructure that will position Egypt as the digital gateway between Europe, Africa, and the Middle East. The project’s innovative desert cooling technology and commitment to zero-waste operations align perfectly with our Vision 2030 sustainability goals.” The €1.8 billion development has achieved a major milestone with successful testing of its revolutionary desert cooling innovation, demonstrating energy consumption reductions of up to 60% compared to conventional systems. “We’re not just building a data center—we’re pioneering the future of sustainable digital infrastructure in one of the world’s most challenging environments,” said Hari Slipicevic, CEO of NEOIX. “Our desert cooling technology proves that environmental responsibility and operational excellence can go hand in hand.” With 40% of capacity already pre-leased to major cloud providers and construction progressing ahead of schedule, the facility is set to become the largest sustainable data center in the MENA region. Learn more https://neoix.ai/projects

This report from NZTech is a good summary of New Zealand's digital infrastructure in 2025: 1. World Class Energy Efficiency New Zealand data centres have an average PUE of 1.3 (comfortably below the global average of 1.54). 2. Sustainable Energy Transistion By securing long term renewable energy agreements through PPAs, data centres give renewable energy developers the confidence to accelerate NZ's transition to renewable energy sources. 3. Key GDP Enablers Data centres are fundamental infrastructure which enabled $76.5 billion in knowledge services last year. 4. Demand More than $10 billion is forecast to be invested in data centre infrastructure over the next 10 years. 5. I'm surprised there is only 104MW of DC capacity in NZ currently?!

NZTech Alliance’s latest report Empowering Aotearoa New Zealand’s Digital Future – Our National Data Centre Infrastructure shows the sector is a diverse mix of small regional centres and large-scale facilities. Data centre growth in Aotearoa New Zealand is shaping the local economy, enabling digital services, and driving investment in renewable energy. https://lnkd.in/gHPsKMDh

Microsoft, in a landmark $6.2 billion agreement with Nscale and Aker, is establishing a new AI data infrastructure in Norway. This strategic partnership ensures a 100% renewable energy-powered computing capacity for Europe, addressing both the exponential demand for AI and critical sustainability goals. The "Stargate Norway" project highlights a crucial trend: access to clean energy is now a decisive factor in the tech race. This deal not only reinforces Europe's digital sovereignty but also positions Norway as a cornerstone of the global digital economy. This is a must-read for C-suite executives and investors focused on the intersection of technology, industrial policy, and ESG commitments. Microsoft #AI #Sustainability #RenewableEnergy #datacenter #DigitalSovereignty #ESG #Innovation #Technology #TechTrends

Microsoft, in a landmark $6.2 billion agreement with Nscale and Aker, is establishing a new AI data infrastructure in Norway. This strategic partnership ensures a 100% renewable energy-powered computing capacity for Europe, addressing both the exponential demand for AI and critical sustainability goals. The "Stargate Norway" project highlights a crucial trend: access to clean energy is now a decisive factor in the tech race. This deal not only reinforces Europe's digital sovereignty but also positions Norway as a cornerstone of the global digital economy. This is a must-read for C-suite executives and investors focused on the intersection of technology, industrial policy, and ESG commitments. Microsoft #AI #Sustainability #RenewableEnergy #DataCenter #DigitalSovereignty #ESG #Innovation #Technology #TechTrends https://lnkd.in/dvt_dNsb

𝗚𝗿𝗲𝗲𝗻 𝗗𝗮𝘁𝗮 𝗖𝗲𝗻𝘁𝗲𝗿 𝗠𝗮𝗿𝗸𝗲𝘁: 𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 ⚡ As businesses scale their IT infrastructure, the demand for energy-efficient, eco-friendly data centers is accelerating. The Green Data Center Market is witnessing rapid growth, driven by: ✅ Rising energy costs & carbon reduction goals ✅ Government sustainability regulations ✅ Adoption of renewable energy & advanced cooling systems ✅ Increasing cloud & hyperscale data center demand 𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙: https://lnkd.in/gSFSXHgw 🔹 𝗞𝗲𝘆 𝗙𝗼𝗰𝘂𝘀 𝗔𝗿𝗲𝗮𝘀: • Renewable power integration ☀️💨 • AI-driven energy optimization 🤖 • Modular & efficient cooling technologies ❄️ • Circular economy practices ♻️ 📈 The market outlook suggests strong growth as enterprises and governments align with net-zero commitments and digitalization expands globally. 💡 Green Data Centers are no longer just an option — they’re the future of sustainable IT infrastructure. 👉 What’s your take on the role of Green Data Centers in shaping a sustainable digital economy? #greendatacenter #sustainability #digitaltransformation #datacenters #netzero #energyefficiency