Amazon Backs New Zealand Economy With $4.4B Data Center Spend

By

Amazon Backs New Zealand Economy With $4.4B Data Center Spend
An US giant Amazon employee passes by its logo on the opening day of the new distribution center in Augny, eastern France, on September 23, 2021. SEBASTIEN BOZON/AFP via Getty Images/Getty Images

Amazon Web Services (AWS) has officially launched cloud operations in New Zealand, committing over NZ$7.5 billion (US$4.4 billion) to build and run new data centers in the country.

The tech giant says this major investment will support over 1,000 full-time jobs annually and add an estimated NZ$10.8 billion to the national economy over time, Bloomberg said.

The project includes creating the AWS Asia Pacific (New Zealand) Region, which will allow businesses to store data locally, run applications faster, and build new cloud-based services.

While Amazon first announced the investment in 2021, Tuesday's launch event in Auckland marked the beginning of live operations.

Prime Minister Christopher Luxon, who attended the launch, called it a "significant investment" and said it showed how New Zealand could attract big global companies.

"I'm celebrating the fact that we've got a big international investor here in New Zealand," Luxon said. "That's what we want to see a lot more of."

Amazon Data Center Project to Create Tech and Construction Jobs

Amazon said the new data center region would support digital growth for companies of all sizes. Existing AWS customers like Xero and Kiwibank will now have a "home-grown" cloud option, which improves data security and speeds up performance.

Local media noted that Amazon executives did not reveal the specific locations of the planned data centers.

However, the company confirmed that the construction, maintenance, and running of these sites will create jobs in both tech and construction.

For a country like New Zealand, which fell into a recession last year, the move is timely.

The government has been actively trying to revive the economy by making it easier for businesses to build and hire. Changes to planning laws and visa rules are part of that push.

According to Invezz, Luxon admitted that it costs about 20% more to build in New Zealand than in Australia, something he said the government is working to fix through faster approvals and more investor-friendly policies.

Experts say this kind of investment also helps with data sovereignty—keeping sensitive information inside the country—and prepares New Zealand for a more digital future.

Tags
Amazon, New Zealand, Data center

© 2025 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation