Cracking the code

Data centres in New Zealand
Author: Mark Burke-Damaschke
Mark Burke-Damaschke Property Council Conference 2025

At a glance

As part of our annual sponsorship of the Property Council Conference, GHD reinforced its commitment to advancing digital infrastructure. A highlight of the event was the panel discussion “Data Centres in New Zealand – Cracking the Code,” which struck a chord with our focus on enabling the next generation of digital infrastructure. I had the privilege of introducing the session, where experts unpacked the rapid rise of data centres and the forces reshaping their future across New Zealand.

And it’s no wonder the conversation drew so much interest. The data centre industry is evolving faster than ever, fuelled by the explosive growth of generative AI and large language models. Traditional cloud systems are no longer enough – markets are shifting toward hyperscale and edge facilities to meet the demand. With global investment expected to top $1.1 trillion by 2030, one thing is clear – the digital infrastructure race is only just beginning.

Mark Burke-Damaschke shares insights on New Zealand’s growing role as a hub for next-generation data centres – exploring the global forces driving demand, the challenges shaping delivery and the opportunities to build sustainable, resilient digital infrastructure.

Why New Zealand is emerging as a data centre hub

New Zealand is quickly carving out a reputation as a go-to destination for data centre development. It’s not hard to see why – abundant green energy, geographic stability, a highly skilled workforce, and a supportive political environment all give New Zealand a distinct edge. Together, these strengths set the stage for AI-driven investment and the next wave of digital infrastructure. At GHD, we’re excited to help turn that potential into reality – whether it’s through feasibility studies, business cases, or delivery strategies that unlock New Zealand’s place on the global digital map.

Sustainability and operational resilience: The next wave of priorities

As the industry looks to the future, the conversation is moving beyond speed and scale to focus on sustainability and resilience. Some of the priorities gaining momentum include:

  • Embodied carbon vs. energy efficiency: Striking the right balance between the long-term environmental impact of materials and the ongoing energy needs of facilities.
  • Modular design: While modular buildings aren’t always the cheapest upfront, thanks to factors like crane usage and other early costs, the faster delivery can save both time and money. They still meet New Zealand’s high-quality building standards and offer flexibility for future upgrades. 
  • Acoustic and saline wastewater management: Tackling environmental and community factors that are often overlooked but can make a real difference.
  • Diesel risk and refurbishment planning: Supporting operational resilience while moving toward cleaner energy also means keeping safety front of mind. We work with clients to build data centres that are resilient, sustainable and safe. With diesel storage of up to a million litres onsite, smart design – like basement tanks, containment systems and fire suppression – is key to protecting both people and infrastructure.

At GHD, we’re partnering with clients and industry leaders to explore these challenges and put them into practice – helping create data centres that are not only resilient but built to last sustainably.

Meeting contractor expectations: Design and delivery challenges

Insights from contractors working on hyperscale and edge data centres across Australia and the Pacific are reshaping how the industry approaches design and delivery. A few clear priorities are emerging:

  • Infrastructure readiness: Engaging early with authorities is essential to align project timelines and secure critical services like power and water.
  • Speed to market: With developers pushing for faster delivery, modular construction and phased documentation are proving effective.
  • Skilled labour shortages: Gaps in electrical and HVAC trades are driving the need for offsite manufacturing and simplified design to ease onsite complexity.
  • Multidisciplinary coordination: Seamless integration across systems is critical, with BIM and clash detection tools helping keep projects on track.
  • Procurement planning: Long equipment lead times make early, close collaboration with vendors vital to avoid delays.

While these challenges are significant, they also open the door to innovation and smarter ways of working. By combining architecture and engineering expertise, our teams are helping clients navigate this complexity and deliver data centres that meet evolving expectations.

In New Zealand, these lessons form part of a broader global story – one shaped by the rise of AI-driven infrastructure and a stronger focus on sustainability and resilience. With natural advantages and a proactive industry, New Zealand is well-positioned to become a strategic hub for next-generation data centres.

At GHD, we’re supporting this transition by exploring new design approaches, delivery strategies, and sustainable solutions – laying the groundwork for infrastructure that will serve communities and industries well into the future. If this is an area you’re exploring, I’d be glad to connect and discuss how we can support your journey. 

 

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