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Microsoft’s first hyperscale data centre in New Zealand is imminent

By Evette Chauvineau


March 12, 2024

What does that mean for New Zealand businesses?

What is all the buzz about Microsoft opening its first hyperscale data centre right here in Aotearoa? This is not just another data centre; it is a technological powerhouse set to supercharge our local businesses like never before.

Back in 2020, when this project was first announced, it seemed like a distant dream. But fast forward to now, and the data centre region is up and running and will very soon be serving Kiwi businesses with all the technological enablement they need to thrive in today's digital landscape.

Previously, our closest Microsoft data centres were across the Tasman in Australia. While “good enough” for most use cases, having a local presence will usher in a new wave of adoption. New Zealand now joins an elite network of over 200 data centres, 190 points of presence, and a staggering 175,000 miles of terrestrial and subsea fibre worldwide – a massive win for local businesses.

"Greg McCallum, Chief Technology Officer at Virtuoso UK, perfectly captured the essence of this transformation when he labeled it a 'game-changer for NZ.' It goes beyond simply adding more servers; it's about making cutting-edge technology accessible to all. Microsoft's strategic move empowers local businesses to innovate at an unprecedented pace, effortlessly scale up, and compete on a global stage. Witnessing the substantial impact and widespread adoption in the UK's local market after Microsoft's launch of local data centers, we anticipate a similar positive trend unfolding in NZ."

What this means for your business

You might be wondering, "That's all well and good, but what does it actually mean for my business?" Great question! Here is the lowdown:

Innovation on steroids - Speed is the name of the game. With a local point of presence, the barriers to cloud adoption melt away. Virtuoso has witnessed the transformational impact of local hyper-scale data centres, having lived through this in the UK a decade ago. More businesses will adopt a cloud-first strategy, and the reasons for deploying on-premises infrastructure will become more specific and niche. Innovation and agility can thrive. With Microsoft’s advanced analytics and artificial intelligence capabilities now available locally, you can take a brilliant idea from conception to reality at lightning speed.

Disaster resilience - New Zealand is no stranger to natural disasters, but with multiple local Azure data centres baked into one local resilient architecture platform, that will be available from day one, your business will not have to suffer potential productivity losses if one centre goes down. This is a far cry from the time-consuming and costly reality of operating highly available servers and services on your own infrastructure.

Enhanced connectivity - With low latency access to Microsoft services, your business operations can run smoother than ever, enabling new experiences and use cases including enhanced options for hybrid cloud deployment as well as backup and DR as a service. Cost and complexity is also reduced when connecting to this local point of presence.

Artificial Intelligence - Microsoft’s new data centres will be fully equipped to assist New Zealand businesses harness the capabilities of AI. Providing access to tools and services to allow organisations to experiment with and adopt the latest technologies in this space will be an invaluable asset as New Zealand attempts to drive higher up global productivity rankings. 

Sustainability - Increasingly, organisations are looking at their environmental impact and carbon footprint. Microsoft’s New Zealand data centre region will be powered by 100% carbon-free energy from day one. Through an agreement with sustainable electricity provider Ecotricity, the three data centres will only use Toitū net carbon zero certified electricity sourced from solar, wind, and hydro.

The ripple effect - The economic impact of this development cannot be overstated. It is not just about creating jobs; it is about fostering a virtuous cycle of innovation. Local start-ups now have the tools to attract investment and talent, propelling New Zealand's position in the global tech arena.

So, what now?

This is the perfect time to take a good, hard look at your IT strategy. Many businesses are already using local data centre hosting facilities, but with Microsoft now on home soil, there is a whole new world of possibilities to explore, from simplifying IT operations and reducing complexity and cost to escaping the dreaded cycle of infrastructure management and upgrades.

However, diving into the cloud is not without its challenges and requires careful planning and a business case that demonstrates a true return on investment. That is where we come in.

At Virtuoso, we are all about empowering businesses with modern ways of working and cutting-edge technology. I know what you're thinking – "My business is too small for the latest technology, but, of course, I want more productive staff!" At Virtuoso, we have over 75+ happy clients being serviced ranging from 20 to 300 staff in size.

Why not kickstart this journey with a free IT consultancy session?

We will sit down with you, understand your unique challenges, and craft a roadmap that aligns with your business goals. The future is in the cloud, and with Microsoft's new data center, it is brighter than ever for New Zealand businesses. Contact us, today.