New Zealand data centre boom could create 5,000 jobs

New Zealand could create around 5,000 jobs through a large-scale data centre construction programme.

Electrical and mechanical trades are expected to account for a significant share of the workforce, according to a new report by Boston Consulting Group (BCG).

The report said New Zealand could capture up to $120 billion in economic activity from new data centres over the next decade if it moved quickly to scale up development. The estimate is significantly higher than BCG's previous forecast of $70 billion.

Construction could drive thousands of jobs

BCG's latest projection is based on a potential 1 gigawatt (GW) data centre build-out.

A construction programme of that scale could create about 3,500 jobs during peak construction, with demand extending across the country's wider supply chain.

Around 60% of those roles are expected to be in electrical and mechanical trades, while civil trades could account for a further 21%.

Once the facilities become operational, data centres are typically expected to support around one ongoing role for every megawatt of capacity. A 1GW build-out could therefore sustain about 1,000 ongoing jobs.

New Zealand eyes data centre investment

BCG New Zealand managing director and partner Kelly Newton said growing global demand for data centres presented an opportunity for the country.

"Between New Zealand's natural advantages, renewables development, stable political environment, and growing investor interest, it has the opportunity to move quickly to capture its slice of the global data centre pie, worth approximately $120 billion in economic activity," Newton said.

The report comes as data centre investment gathers momentum across New Zealand.

Earlier this month, Contact Energy announced it was exploring plans with CDC Data Centres for a potential 250-megawatt data centre at Stratford in Taranaki.

In Southland, Datagrid is preparing to develop a large-scale data centre at Makarewa, north of Invercargill.

Data centre growth faces opposition

The potential economic and employment gains come alongside growing debate over the impact of large data centre developments.

Major data centre projects have faced local opposition in parts of the United States, while New Zealand's Green Party has called for a one-year moratorium on new data centre developments.

The Greens have questioned the potential benefits of the projects and raised concerns over their impact on water and electricity supplies.

As New Zealand weighs the economic opportunity presented by the global data centre expansion, the availability of skilled tradespeople, energy and infrastructure will remain key factors in determining how quickly the sector can grow.