AWS launches NZD $7.5 billion cloud region to boost Kiwi tech

AWS has launched a new Asia Pacific (New Zealand) Region, expanding its cloud infrastructure investments in New Zealand.

The new AWS Region provides a local option for New Zealand organisations, including startups, major enterprises, and government agencies, to manage workloads, store data in-country, and deliver digital services with reduced latency. Several prominent New Zealand entities, such as Xero, TVNZ, Kiwibank, University of Auckland, and Wellington City Council, are already AWS customers and stand to benefit from the increased options and flexibility the new region provides.

The opening of this AWS Region forms part of Amazon's broader commitment to New Zealand, involving more than NZD $7.5 billion in planned investment and support for over 1,000 full-time jobs annually. According to estimates referenced by AWS, this investment is expected to add NZD $10.8 billion to New Zealand's Gross Domestic Product.

Prime Minister Rt Hon Christopher Luxon attended the AWS Cloud Days event and welcomed the investment as a significant step for New Zealand's technological development and economic growth.

"You are the lifeblood of New Zealand business and we need to power up, and we've got a lot of great things to do in this country. We are going to build the most advanced small country on Earth and for that to happen, government, partnering with business, and with the community is how we're going to get that job done.

Prime Minister Luxon emphasised a shift in government policy to foster a business-friendly environment and promote growth through foreign investment.

"Well, I have to tell you, that has truly well and truly changed under this government, because we are open for business and we are obsessed on growth, growth, growth above everything. And we welcome investment to New Zealand because that's how we actually provide jobs for Kiwis, that's actually how we lift our incomes by supporting new businesses, and we invest in existing ones that are thirst for new capital injections to leverage further growth.

"Now, I have to say, the investment today by AWS of $7.5 billion New Zealand dollars, let me just say that again. 7.5 billion from AWS in New Zealand has been well flagged, but it is a great example of how we need to welcome companies, people, and ideas that can improve the lives of New Zealanders. I've got to tell you, I think that investment is immense and it is historic. It will have a significant impact on our GDP. It will create up to 1,000 jobs, and it will deliver more than almost $11 billion worth of boost to our GDP and it is confidence that shows that New Zealand is a great place for investment for the future.

Luxon highlighted the size and significance of the AWS investment for New Zealand, calling it the largest publicly announced technology investment in the country, and the largest by an international technology firm.

"We believe that this is the largest publicly announced technology investment in New Zealand. It's certainly the largest by any international technology company. And I know that for many of the companies that are here, some of New Zealand's most prominent technology companies have built their success, taking their products and services to Kiwis out across the whole world on AWS technology, which is taking their tech out there to the world. Companies like Xero and Pushpay and Halter, and Sharesies and Orion Health and Gentrack and MATTR just to name a few, this investment will see even many, many more of our great Kim startups and entrepreneurs joining that list.

Regarding the broader impact, the Prime Minister noted the role of technology infrastructure in positioning New Zealand as a digital hub.

"But AWS's decision to establish a cloud region here signals our growing role as a digital hub in the Asia Pacific region. It reflects the strength of our digital infrastructure, the incredible world class talent of how a workforce and people and our shared commitment to innovation, sustainability, and economic resilience. But beyond the numbers, the billions of investing in the thousands of jobs created, this is, in fact, all about opportunity for all New Zealanders, for our tech sector, it means access to world class cloud services, for our small and medium enterprises. It's about having the tools, to scale globally, and to become more productive, for our public sector, it means enhanced security, performance, and resilience, and rest assured we have a big job to digitise government, and that's a big focus of mine going forward from here.

"And I'll just say to you for our young people in New Zealand, it's a tremendous signal, that the future of work and the future of technology is being built right here at home. So, the AWS investment aligns very strongly without going for growth plan, which are the five things that we think we need to do to lift the collective living standards of all of us here in New Zealand. It will create Kiwi jobs, and it will grow talent. It will power innovation and science and technology and innovation to develop higher value products and services. It will promote global exports and bringing and attract investment to New Zealand, and it will deliver the critical digital infrastructure that will be world class and empower future growth.

"So, I guess on behalf of the government and on behalf of all New Zealanders, I just want to extend again now sincere gratitude and thanks to AWS for your confidence and our country, for your confidence and our people, and for your confidence and our future. This is a major milestone, not just in terms of size, but I think in what it represents. It's a vote of confidence in New Zealand as a place to do business, to innovate, and to build for the long term. And this investment will supercharge growth, and it is key to creating more jobs, lifting incomes, and putting more money into the pockets of Kiwis."

Cloud benefits

The new region will provide onshore cloud options that can help New Zealand businesses and organisations keep data within the country, address data residency requirements, and access cloud services with lower latency.

Government Chief Digital Officer Paul James also expressed support for the expansion of onshore cloud infrastructure in New Zealand.

"The launch of Data Centre initiatives in New Zealand promises significant economic benefits, such as job creation and fostering technological innovation," said Mr James.

"Strategic collaboration boosts the New Zealand public sector and accelerates New Zealand's growing technology sector, digital economy, and the adoption of Cloud services in New Zealand."

The establishment of the AWS Asia Pacific (New Zealand) Region is part of an ongoing trend where technology firms continue to invest in digital infrastructure, digitally enabling the public and private sector and supporting national economic objectives.