In a groundbreaking step for New Zealand’s digital evolution, Microsoft has introduced the country’s first hyperscale cloud region. This move marks a significant milestone in Microsoft’s nearly 40-year history in New Zealand, opening new doors for businesses, communities, and individuals to harness the power of advanced technology.

The new cloud region will help fast-track the use of cloud solutions across industries, enabling innovation and efficiency. Alongside this, Microsoft has committed to training 100,000 New Zealanders in digital and AI skills over the next two years. This effort is designed to empower the workforce with the expertise needed to thrive in an increasingly digital economy while supporting long-term economic growth.

A Focus on Sustainability

Sustainability lies at the heart of this project. The cloud region operates using 100% carbon-free electricity, made possible through a 10-year agreement with Contact Energy. This collaboration taps into renewable energy generated by the Te Huka 3 geothermal power station, which contributes 51.4 megawatts of clean energy annually to New Zealand’s grid.

To further reduce its environmental footprint, the datacenter employs advanced water-free cooling systems, maintaining energy efficiency without drawing on water resources.

Unlocking Economic Potential with AI

The investment is expected to provide significant economic benefits over the coming years. A report by Accenture estimates that generative AI could add $76 billion to New Zealand’s economy by 2038. Microsoft’s cloud infrastructure will play a key role in supporting AI adoption, helping businesses unlock new levels of productivity and growth.

In addition, Microsoft is committed to ensuring AI tools are widely accessible. Partnerships with schools, organisations, and businesses will help people at all levels gain the knowledge and tools needed to succeed in the digital era.

Building an Inclusive Workforce

To bridge talent gaps and promote diversity, Microsoft is working with Te Pūkenga to develop skills in West Auckland’s creative technology sector. The partnership focuses on reskilling underrepresented groups, including Māori, Pacific peoples, and women. Initiatives range from micro-credential programmes for students and lifelong learners to specialised training for teachers in schools and kura kaupapa Māori.

Supporting Local Businesses and Innovation

The new hyperscale cloud region is set to provide local businesses and innovators with cutting-edge tools to grow their reach and deliver better services. By investing in modern infrastructure and strengthening partnerships with local organisations, Microsoft aims to support New Zealand’s innovators as they scale globally.

This initiative is a major leap for New Zealand’s technology sector, underscoring Microsoft’s commitment to driving innovation, building sustainability, and empowering the workforce for the future.