Microsoft's opening of its hyperscale cloud region marks the most significant milestone in the company's nearly 40-year history in New Zealand. The company will support New Zealanders in making the most of this opportunity by training 100,000 people over the next two years with AI and digital skills, creating long-term economic benefits.
The datacenter region brings the best of Microsoft’s sustainability investments. It will be supported by 100% carbon-free electricity due to the 10-year agreement that Microsoft signed with Contact Energy for the Renewable Attributes produced by Te Huka 3 geothermal power station. The long-term contract with Microsoft supported Contact’s investment decision to construct the Te Huka 3 power station. The station can generate 51.4 megawatts throughout the year. This deal helps add carbon-free energy to the Aotearoa grid.
Microsoft’s Aotearoa datacentre will also use water-free cooling, ensuring data is stored at the right temperature using air cooling. Microsoft is supporting Community Waitākere to work alongside the local community to restore the biodiversity values and mauri of the threatened stream, floodplain, and wetland habitats in the Paremuka Stream catchment. Microsoft, Community Waitākere and the Society for Ecological Restoration are working to restore Harbourview-Orangihina Park’s native ecosystems, including freshwater wetlands, salt marsh and native coastal forest. The project aims to protect rare bird species and preserve the area's cultural significance, supporting its sustainability for future generations.
The investment offers incredible opportunities for New Zealand. A recent Accenture research identified that gen AI adoption is expected to add $76 billion to the New Zealand economy by 2038, based on a standard trajectory. The report pointed at cloud infrastructure and public cloud adoption as key enablers to making the most of gen AI to boost our productivity and GDP.
“We are a small but mighty nation of visionaries who have propelled our business innovation, incredible sports teams, and amazing entertainment into worldwide brands. So many New Zealand companies are going global, and having this infrastructure here in Aotearoa is going to help many more innovators to realise their ambitions and show the rest of the world how creative and talented we can be,” says Vanessa Sorenson, Managing Director of Microsoft New Zealand.
Microsoft also focuses on empowering 100,000 learners by 2027 to build digital and AI skills. This builds on various skilling programmes and partnerships Microsoft has supported in New Zealand with local partners, educators and customers since the cloud region was announced.
Microsoft, the Ministry of Social Development and Te Pūkenga are also partnering to address talent shortages in West Auckland's creative technology sector by providing upskilling and reskilling opportunities, particularly for underrepresented groups such as Māori, Pacific peoples and women.
The initiative supports an inclusive workforce by upskilling kaiako in secondary schools and kura kaupapa, offering micro-credentials to high school students and providing micro-credentials to lifelong learners re-entering the workforce.
A hyperscale cloud region in Aotearoa enables local organisations to store, process and back up their data on New Zealand’s shores. Local customers also benefit from the threat protections afforded by an intelligence network with a visibility of 78 trillion signals every day. This means the New Zealand government and businesses can be both locally hosted and globally protected.
Some companies are listed as initial partners, including Fonterra, Craigs Investment Partners, ASB, BNZ, ACC, Whakarongorau Aotearoa, Auckland Transport, SMX and The Warehouse Group, alongside trusted partners such as PwC, Veeam, AvePoint and CCL.
