Amazon has launched its cloud services in New Zealand

Amazon has officially launched its cloud services in New Zealand, reviving a plan first announced in 2021 to invest more than NZ$7.5 billion ($4.4 billion) in data centers across the South Pacific nation.

Amazon Web Services (AWS) plans to open the AWS Asia Pacific (New Zealand) Region “to make it easier for local customers to access the cloud computing services they need to run applications, store data, and meet other local requirements,” the company said in an announcement in Wellington on Tuesday.

Data center expansion to create 1,000+ jobs and boost GDP by NZ$10.8B

The programme, which will span building, managing, and maintaining data centers, will generate more than 1,000 full-time jobs a year and help contribute around NZ$10.8 billion to the country’s GDP, Amazon said without giving a timeframe for the investment.

New Zealand has been actively seeking foreign investment to revive its economy after last year’s deep recession, reforming planning laws and visa regulations to attract international investors and entrepreneurs.

Speaking at a launch event in Auckland’s Mt Wellington, Prime Minister Christopher Luxon said Amazon advised that New Zealand is 20% more expensive to build in than Australia, highlighting the need for new planning laws. 

Local news media reported that Amazon executives did not disclose specific locations for the new data centers. Amazon added that local customers such as Xero and Kiwibank can “run workloads, store data locally, and deliver seamless digital experiences” at “even lower latency,” and faster launch of cloud-based products.

According to Luxon, the investment plan was initially announced nearly four years ago; however, he noted today was the live launch, which was a significant investment for the country.

“It’s been over a number of years, I’m not disputing that,” he told reporters. “I’m celebrating the fact that we’ve got a big international investor here in New Zealand. That’s what we want to see a lot more of, and it’s consistent with the focus of this government, which is to welcome investment in this country because it drives jobs.”

Amazon commits AU$20B to expand data centers in Australia.

Amazon has only recently stated it will invest AU$20 billion over the next five years, 2025 through 2029, to build, operate, and sustain data centers across Australia. Prime Minister Anthony Albanese met with Amazon Web Services CEO Matt Garman in Seattle, ahead of the G-7 summit in Canada, where the agreement was showcased as a landmark in digital collaboration.

This is the most significant investment in an Australian-based technology company, significantly boosting the local Australian economy. It expects to have a multiplier effect in helping local businesses by providing technology products and services, employing local technical staff, and providing local support 24/7 in local languages, such as for governments and critical national infrastructure. 

The Australian government will premiere the investment, which aligns with its agenda of strengthening productivity and boosting the economy with the help of AI. It delivers the newest cloud and AI features to hundreds of thousands of Amazon Web Services (AWS) customers and partners, providing local data residency and regulatory compliance assurances.

According to the Australian Government’s Department of Industry, Science and Resources, AI and Automation are expected to add up to AU$600 billion per annum to Australia’s GDP by 2030. AWS has a long-term commitment to the Australia Region, and the first AWS Asia Pacific Region was launched in Sydney in 2012. In 2023, AWS opened the AWS Asia Pacific (Melbourne) Region and the nation’s first AWS Local Zones in Perth. 

In April 2024, AWS made Amazon Bedrock available, AWS’s managed generative AI service, to the AWS Asia Pacific (Sydney) Region and in July 2024 agreed with the Australian Government between AWS and the Australian Government to provide a “Top Secret” AWS Cloud that will accelerate cloud innovation in both national security and defense, and strengthen the country’s defense and intelligence capabilities.

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