Amazon Web Services (AWS) has officially launched a new cloud service region in New Zealand, implementing its plan to invest NZD 7.5 billion (approximately USD 4.4 billion) in 2021 to build and operate data centers in the country.

The new AWS Asia Pacific (New Zealand) region consists of three availability zones and is now open to New Zealand businesses. This region provides a range of services including analysis, computing, content delivery, databases, generative artificial intelligence, machine learning, networking, storage, and other cloud computing technologies.

Prasad Kalyanaraman, Vice President of AWS Infrastructure Services, stated in a statement that “the new AWS Region in New Zealand will help meet the growing demand for cloud services nationwide and accelerate digital transformation for organizations of all sizes.” He added, “With this release, enterprises can now leverage advanced AWS technology while meeting local data residency requirements. ”

At the launch event held in Auckland on Tuesday, AWS confirmed that the data center has been “put into use”, but did not disclose its specific location for security reasons. AWS New Zealand Regional Manager Manuel Bohnet said in an interview with the New Zealand Broadcasting Corporation, “They are distributed in Auckland and surrounding areas, maintaining sufficient distance to cope with scenarios such as floods and power outages, while also being close enough to ensure low latency.”

According to AWS, the first batch of customers in the new cloud region include MP New Zealand AsureQuality、Contact Energy、Education Perfect、Foodstuffs South Island、Halter、Kiwibank、MATTR、Mercury NZ、Les Mills、 Ministry of Transport, Mitre 10 New Zealand, New Zealand Post, One New Zealand, Sharesies, Steel&Tube Holdings, Toit ū Te Whenua New Zealand Land Information Office TradeMe、TVNZ、 University of Auckland Vector、 Wellington City Council, Xero, etc.

For many years, AWS has been continuously investing in New Zealand’s digital infrastructure, improving customer network reliability by establishing submarine fiber optic cable connections. Five years ago, AWS launched two Amazon CloudFront edge sites in Auckland, followed by the addition of AWS Direct Connect sites and a local expansion area in 2023.

AWS estimates that the new cloud region will contribute approximately NZD 10.8 billion (approximately USD 6.32 billion) to New Zealand’s Gross Domestic Product (GDP) and support an average of over 1000 full-time positions in areas such as facility maintenance, engineering, and telecommunications.

New Zealand Prime Minister Christopher Luxon attended the launch event and welcomed the new cloud region, calling it an important investment for the country. He told local media, “We are delighted to see a large international investor come to New Zealand. This is exactly what we hope to see and also in line with the current government’s policy of welcoming investment to drive employment growth.”

New Zealand is seeking to attract foreign investment to stimulate its severely declining economy. The government has simplified planning regulations to accelerate the approval of new projects and adjusted visa requirements to attract foreign investors and entrepreneurs.

At the same time, AWS announced the signing of a memorandum of understanding with the New Zealand government to train 100000 people in cloud computing skills, with 50% of the target already achieved.