AWS to Open New Zealand Region by 2024

Amazon Web Services (AWS) has announced plans to open a new availability region in Aotearoa, New Zealand. Known as AWS Asia Pacific (Auckland), this will be the first availability region in New Zealand.

The AWS Auckland Region will consist of three Availability Zones (AZs) and will be owned and operated by a local AWS subsidiary within New Zealand. In the announcement, the company noted, “AWS’s continuous focus on innovation and investment in critical infrastructure is an important enabler of the support we provide to New Zealand businesses as they modernize and innovate using advanced cloud capabilities like machine learning and the Internet of Things.”

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Each AWS Region is divided into different AZs, each with their own power, cooling and security to help customers maintain continuity, as well as improve latency for critical applications. Customers in the new Auckland region can design applications to run in multiple AZs for ultra-low latency and fully redundant systems. Moreover, a New Zealand region provides customers with the option to store data within the country’s borders should they choose.

Opening a new region in New Zealand helps to expand the company’s reach in Asia Pacific, however, AWS expects that the project will have a positive impact on the local economy as well.

According to the newly released EIS, AWS plans to invest NZ$7.5 billion (US$5.3 billion) in New Zealand over the next 15 years through the new AWS Asia Pacific (Auckland) Region, which includes capital expenditures on the construction of data centers, operational expenses such as ongoing utilities and facility costs, and purchases of goods and services from regional businesses. The EIS estimates that spending on construction and operation of AWS infrastructure in New Zealand is expected to increase New Zealand’s GDP by approximately NZ$10.8 billion (US$7.7 billion) over the next 15 years. The EIS also establishes that the new AWS Region should bring direct and indirect economic benefits like new employment and sales for the data center supply chain and related sectors. In total, an estimated 1,000 new full-time equivalent (FTE) jobs will be created in New Zealand from this investment.

In an economic impact study released with the announcement, the company unveiled plans to invest  $5.3 billion USD in the new region over the next 15 years. The investment will include construction and other capital costs, ongoing operational costs including labor and utilities, and goods and services purchased from the local economy. AWS estimates that the Auckland Region will have a total economic impact of $7.7 billion USD in the country.

Prasad Kalyanaraman, AWS Vice President of Infrastructure Services, noted that the Auckland Region will support both private and public enterprises in the region.

“AWS supports thousands of organizations across New Zealand in their drive to innovate, succeed, and grow globally. AWS Cloud technology is providing new ways for government to further engage with citizens, for enterprises to innovate for their next phase of growth, and for entrepreneurs to build businesses and compete on a global scale.”

“We are excited to build new world-class infrastructure locally, train New Zealanders with in-demand digital skills, and continue to help local organizations deliver applications that accelerate digital transformation and fuel economic growth.”