In a landmark development for New Zealand’s digital landscape, Microsoft has officially opened the country’s first hyperscale cloud region. This milestone represents a pivotal chapter in Microsoft’s nearly 40-year journey in New Zealand, promising transformative opportunities for businesses and individuals alike.
The new datacenter region is designed to accelerate the adoption of cloud technology, with Microsoft committing to train 100,000 New Zealanders in artificial intelligence (AI) and digital skills over the next two years. This initiative aims to create a digitally skilled workforce, driving long-term economic growth.
Sustainability at the Core
The hyperscale cloud region integrates Microsoft’s advanced sustainability measures, operating on 100% carbon-free electricity. This is made possible through a 10-year agreement with Contact Energy, leveraging renewable attributes from the Te Huka 3 geothermal power station. The partnership underpinned Contact Energy’s decision to construct the Te Huka 3 facility, which generates 51.4 megawatts of renewable energy annually, adding sustainable power to New Zealand’s electricity grid.
Additionally, the datacenter employs water-free cooling technology, maintaining optimal storage conditions while conserving water resources.
Economic and AI Opportunities
The investment is projected to deliver significant economic benefits. Research conducted by Accenture for Microsoft forecasts that generative AI adoption could add $76 billion to New Zealand’s economy by 2038. Cloud infrastructure and public cloud services are identified as key drivers to harnessing the productivity and GDP growth enabled by AI.
Microsoft’s initiatives are also designed to make AI accessible to all New Zealanders, regardless of career stage or community. This includes upskilling programs and partnerships with local organizations, schools, and businesses.
Building a Skilled and Inclusive Workforce
Microsoft is collaborating with Te Pūkenga to address talent shortages in West Auckland’s creative technology sector. This partnership focuses on reskilling underrepresented groups, including Māori, Pacific peoples, and women. The program offers micro-credentials for high school students and lifelong learners, alongside training for educators in secondary schools and kura kaupapa.
Empowering Local Innovators
The hyperscale cloud region is poised to empower New Zealand innovators to expand globally and deliver enhanced services to their customers. Microsoft’s continued collaboration with local partners underscores its commitment to modernizing the nation’s digital infrastructure and fostering a future-ready workforce.
This investment marks a significant step towards transforming New Zealand’s technology landscape, reinforcing Microsoft’s role as a catalyst for innovation and sustainability in the region.
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