AWS to Launch $7.5B Auckland Data Center in 2025 for Enhanced Services

In December 2024, Amazon Web Services (AWS) announced its launch customers and partners for the forthcoming $7.5 billion Auckland cloud region data center, which is slated to commence operations in 2025. AWS revealed this information during its annual re:Invent conference and cited One New Zealand and Vector as the first customers to be hosted at the new facility. Datacom, a significant AWS partner and a leading technology company in New Zealand, will also host some of its customers in the new region upon its operational launch.

The Auckland cloud region data center, initially disclosed in 2021, had its opening anticipated in 2024. However, the project encountered delays, primarily due to consent and infrastructural hurdles faced at its designated West Auckland site. This postponement has not dampened the enthusiasm of key stakeholders and partners who remain committed to leveraging AWS’s advanced cloud capabilities. The new data center is expected to significantly enhance cloud service delivery and provide numerous technological benefits to New Zealand-based enterprises and public sector entities.

Key Launch Customers and Partners

One New Zealand and Vector

One New Zealand, a key telecommunications company, has been making extensive use of AWS’s cloud capabilities and generative AI, including Amazon Bedrock. CEO Jason Paris expressed enthusiasm about leveraging the in-region workloads to support low latency and AI-driven customer experiences. The company aims to capitalize on AWS’s generative AI, machine learning, and analytics capabilities to further enhance customer satisfaction and experience. This strategic move is expected to significantly improve service delivery and foster innovation in New Zealand’s telecommunications sector.

The energy sector is also represented with Vector being the first energy company in New Zealand to utilize the new data center. Jerry Li, General Manager of Digital Technology at Vector, commented on the company’s current utilization of AWS for a significant portion of its digital workloads. The local access and speed provided by the new Auckland region are expected to further accelerate Vector’s migration, modernization, and sustainability goals. By leveraging AWS’s advanced cloud technologies, Vector aims to enhance its operational efficiency, reduce costs, and achieve its sustainability objectives, contributing to a greener future for New Zealand.

Datacom’s Strategic Partnership

Datacom is notable for its extensive engagement with both public and private sector clients in New Zealand. The technology firm, which recently earned a Tech Partner award at the Reseller News Innovation Awards, serves as an AWS Premier Consulting Partner. Justin Gray, the managing director of Datacom New Zealand, emphasized the strategic nature of the company’s relationship with AWS. The partnership enables Datacom to provide comprehensive AWS cloud services, incorporating advanced solutions such as Artificial Intelligence (AI) and Machine Learning (ML). These innovative technologies are instrumental in client cloud transformation, productivity enhancement, and the adoption of new customer experiences.

Gray also highlighted that the nearly two-decade-long partnership with AWS has been fortified by the robust infrastructure, security, and privacy commitments provided by AWS. This strong foundation allows Datacom to deliver reliable and secure cloud solutions to its clients, driving digital transformation across various industries. With the new Auckland data center, Datacom is poised to offer enhanced cloud services, enabling its clients to achieve their business goals more efficiently and effectively.

Infrastructure and Availability

Design and Features

The Auckland data center is a part of AWS’s extensive global network, making it the 26th AWS cloud region worldwide. The facility will feature three availability zones within Auckland, each comprising one or more data centers. These zones are designed to be physically and geographically distinct, yet close enough to ensure ultra-low latency for multi-zone applications. This setup is engineered to ensure business continuity and high availability for AWS customers.

Each zone will be equipped with independent power, cooling, and physical security systems, all interconnected by redundant, ultra-low latency networks. This infrastructure design will provide robust support for mission-critical applications and ensure seamless operations even in the event of a localized failure. By offering reliable and high-performance cloud services, the new data center aims to meet the growing demands of New Zealand’s businesses and public sector organizations.

Sustainability Commitments

In alignment with its sustainability goals, AWS has committed to powering the new Auckland data center with 100 percent renewable energy from its launch. This commitment is backed by an agreement made last year with Mercury NZ for a long-term corporate power purchase involving the Turitea South wind farm. Amazon has already achieved its global renewable energy goal seven years ahead of schedule, a milestone reached in 2023.

By utilizing renewable energy sources, AWS aims to reduce its environmental footprint and contribute to a more sustainable future for New Zealand. The new data center will play a crucial role in supporting AWS’s broader sustainability initiatives and help customers achieve their own sustainability goals. This focus on renewable energy underscores AWS’s commitment to environmental responsibility and aligns with global trends toward greener and more sustainable business practices.

Impact on Local Businesses and Public Sector

Enhanced Service Delivery

The Auckland region’s inclusion in AWS’s expansive network highlights AWS’s commitment to supporting a diverse array of customers. Current AWS customers in New Zealand include prominent organizations such as Air New Zealand, ANZ Bank, Bank of New Zealand, Contact Energy, Education Perfect, and several government departments and educational institutions. This diverse clientele underscores AWS’s established presence and the extensive utilization of its cloud services across various sectors within New Zealand.

By offering improved cloud service delivery and advanced technological capabilities, the new data center will enable these organizations to enhance their operations and deliver better services to their customers. The increased local access to AWS’s cloud infrastructure will also facilitate the adoption of innovative technologies, driving digital transformation and fostering economic growth in the region.

Future Prospects

In December 2024, Amazon Web Services (AWS) announced its launch customers and partners for the upcoming $7.5 billion Auckland cloud region data center, set to begin operations in 2025. This announcement was made during AWS’s annual re:Invent conference, where it named One New Zealand and Vector as the first customers to be hosted at the new facility. Additionally, Datacom, a major AWS partner and a top technology company in New Zealand, will host some of its clients in the new region once it becomes operational.

The Auckland cloud region data center, initially revealed in 2021, was expected to open in 2024. However, the project faced delays due to consent issues and infrastructural challenges at its West Auckland site. Despite these setbacks, key stakeholders and partners remain enthusiastic and committed to utilizing AWS’s advanced cloud capabilities. The new data center is projected to significantly boost cloud service delivery and offer numerous technological advantages to New Zealand-based businesses and public sector organizations.

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