Amazon has formally launched its cloud computing services in New Zealand, reviving a plan first unveiled in 2021 to invest more than NZ$7.5 billion ($4.4 billion) in data centres.
The investment, to be deployed through Amazon Web Services (AWS), marks one of the largest technology commitments in the country’s history.
Beyond establishing the AWS Asia Pacific (New Zealand) Region, the move is set to generate over 1,000 full-time jobs annually and add an estimated NZ$10.8 billion to New Zealand’s gross domestic product.
The announcement underscores the government’s strategy of attracting foreign investment to revive an economy that slipped into recession last year.
AWS investment reshapes New Zealand tech and jobs
The launch of AWS in New Zealand is expected to transform the country’s digital infrastructure. According to Amazon, the construction, operation, and maintenance of the new data centres will create over 1,000 jobs each year.
These jobs span not only the building phase but also long-term roles in operations and maintenance.
The company estimates that the project will contribute NZ$10.8 billion to the economy over time, positioning cloud technology as a driver of growth in the South Pacific nation.
While the investment does not yet have a publicly disclosed timeline, the creation of a new AWS region in New Zealand signals long-term commitment to the market.
Prime Minister Christopher Luxon, attending the launch event in Auckland on Tuesday, highlighted the significance of the investment.
Local media reported that Amazon executives declined to reveal details such as data centre locations, but the launch establishes a foundation for customers across the country to store and process data locally.
Cloud adoption gains momentum in New Zealand
The AWS Asia Pacific (New Zealand) Region will give local companies the option to run workloads and store data within the country’s borders, improving latency and compliance.
Existing customers such as accounting platform Xero and Kiwibank now have a “home-grown” option for hosting services, which Amazon says will allow businesses to deliver digital products faster and with greater reliability.
This development is particularly relevant for industries that require secure and low-latency cloud services. As organisations increasingly adopt cloud computing, the ability to keep data within New Zealand’s jurisdiction is expected to accelerate adoption rates.
Luxon acknowledged that Amazon had previously flagged higher costs of operating in New Zealand compared to Australia, with expenses around 20% higher.
These cost pressures have been cited as one reason behind the government’s decision to reform planning laws and adjust visa settings in order to attract investors like Amazon.
Government reforms aim to unlock investment
New Zealand has been actively working to stimulate foreign investment as part of its economic recovery strategy. Following a deep recession last year, the country has struggled to maintain growth momentum.
To address this, the government has reformed planning regulations to speed up approvals for large-scale projects and has altered visa settings to attract global entrepreneurs and investors.
Luxon framed the AWS launch as evidence that these policy adjustments are yielding results.
He noted that while the AWS plan was initially announced nearly four years ago, Tuesday’s event marked the official start of operations, which the government sees as a milestone for its investment-driven recovery strategy.
The Prime Minister emphasised that welcoming international investors is central to job creation and economic resilience. He reiterated that the government wants “a lot more” of such projects to establish New Zealand as an attractive destination for multinational firms.
AWS launch strengthens digital infrastructure
For New Zealand, the AWS launch represents more than a large-scale investment; it signals a structural shift in digital infrastructure.
The presence of a regional cloud provider ensures that data sovereignty and service availability are no longer dependent on offshore centres.
For customers like Xero and Kiwibank, the immediate advantage is improved performance and regulatory compliance. For the broader economy, the estimated NZ$10.8 billion GDP boost reflects how digital infrastructure can underpin wider economic modernisation.
Although Amazon has not provided a timeline for construction or full operations, the launch has already reshaped expectations around the country’s technology capabilities.
With foreign investment central to the government’s economic plans, the AWS commitment is seen as a strategic pivot point for New Zealand’s digital economy.
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