These concerns are all legitimate – and they’re not unique to New Zealand. But there is a real risk that we will be left behind, not just in adoption, but in opportunity.

A surging opportunity for sustainable data centres

Around the world, businesses are embedding AI into everything from customer service to climate modelling. Governments are building national strategies. Venture capital is pouring into startups. All of this needs computing power, data, energy and infrastructure.

Pressure is mounting to make data centres greener, cleaner and more resilient. We have previously explored how New Zealand can power sustainable data centres while the world sleeps. This outlines several of New Zealand’s key advantages:

• Reliable renewable energy. Our cool climate and access to dispatchable hydro and geothermal power make New Zealand one of the few countries capable of supporting baseload data centre operations with renewable energy — not just intermittently, but consistently.
• Strategic data connectivity. Direct data connectivity to Australia and the United States is already in place, with a dedicated cable to Asia expected in 2026. This gives us the infrastructure backbone to serve as a regional AI hub.
• A stable, trusted environment. New Zealand’s low corruption risk, political stability and global reputation as a responsible custodian of data make it an attractive destination for foreign investment in digital infrastructure.

In a world chasing low-emissions innovation, New Zealand can be a quiet powerhouse behind global AI acceleration.

Bridging the gaps

New Zealand has the infrastructure and resources. What we need now is momentum — and a coordinated strategy to close the opportunity gaps. Here’s where government, industry and investors can work together:

• Strategy and vision gap. New Zealand needs a joined-up vision and AI strategy to sell to domestic stakeholders, international customers and investors. This strategy should articulate how the benefits of AI can be shared with a wide range of communities, employers and workers. A compelling national narrative can build public confidence, attract investment and guide regulation.
• Regulatory gap. People are more likely to support AI if they trust how it’s governed. Clear regulation around AI use, data privacy, accountability and disclosure of AI-generated content can reduce fear and create guardrails for safe innovation. Other countries are taking stronger steps to legislate and set limitations.
• Investment gap. Whether it’s hyperscale data centres, fibre upgrades or clean energy generation, the next decade will demand big investments. Global technology companies are watching – and will invest where the conditions are right. New Zealand must make it easy for these companies to say ‘yes’ by laying the foundations with network infrastructure, power generation and data centre construction expertise.
• Education and skills gap. Digital infrastructure can’t scale without human talent. New Zealand needs more skilled workers – in both AI and infrastructure development. This includes trades, technicians and AI-literate leaders across every sector.