AWS goes live in New Zealand

Amazon Web Services (AWS) has opened its New Zealand cloud region in a move that delivers on an earlier commitment to invest NZ$7.5bn over 15 years into the country’s digital infrastructure.

The cloud region is expected to create an average of more than 1,000 full-time equivalent jobs annually and contribute an estimated NZ$10.8bn to New Zealand’s GDP.

The launch will provide developers, startups and enterprises, as well as government, education and non-profit organisations, the ability to run their applications and serve users from datacentres located within New Zealand. This ensures lower latency and allows customers to securely store their content in the country, addressing data residency requirements.

New Zealand prime minister Christopher Luxon noted that AWS’s investment in New Zealand is a major milestone, not just in terms of size, but in what it represents.

“It’s a vote of confidence in New Zealand as a place to do business, to innovate and to build for the long term,” he said. “This investment will supercharge growth, and it is key to creating more jobs, lifting incomes and putting more money into the pockets of Kiwis.”

The initial plan for the cloud region was announced in October 2021, with a projected opening in 2024. A report by local media Newsroom claimed that Amazon has given up on building its own datacentre in the island-nation amid rising electricity costs and infrastructure-related challenges. It is uncertain if AWS is using a local datacentre provider to operate the new cloud region in New Zealand.

Prasad Kalyanaraman, vice-president of infrastructure services at AWS, said the New Zealand cloud region will help serve the growing demand for cloud services across the country and empower organisations of all sizes to accelerate their digital transformation.

The New Zealand cloud region consists of three separate and distinct geographic locations known as availability zones. This design provides customers with business continuity and fault tolerance for their applications.

A key aspect of the new region is its commitment to sustainability. The infrastructure will be powered by renewable energy from day one, thanks to a long-term agreement with Mercury NZ for the Turitea South wind farm.

The investment also includes a significant focus on digital skills training. Through a memorandum of understanding with the New Zealand government, Amazon has pledged to train 100,000 people in cloud skills and has already provided training to more than 50,000 individuals.

Prominent New Zealand organisations already using AWS services include Kiwibank, TVNZ, Xero, the University of Auckland and Wellington City Council.

Graeme Muller, CEO at NZTech, noted the broader impact of the launch. “This investment in digital infrastructure and Amazon’s commitment to digital skills can accelerate New Zealand technology businesses and help New Zealanders to move into highly skilled, secure and well-paid technology jobs,” he said.

The launch in New Zealand marks the 38th AWS cloud region globally, comprising 120 availability zones. The company has plans for three more regions in Chile, Saudi Arabia and an AWS European sovereign cloud.

AWS first opened its New Zealand entity in Auckland in 2014. Prior to the new cloud region, it has launched two Amazon CloudFront edge locations, an AWS Direct Connect location and an AWS Local Zone location in Auckland.