Data centre build could create 5000 jobs, report says
It said New Zealand could capture up to $120 billion in economic activity from new data centres over the next decade if it moved quickly.
A recent report from Boston Consulting Group (BCG) suggests that constructing large-scale data centres in New Zealand could generate approximately 5,000 jobs during the peak construction period, with the majority in electrical and mechanical trades. The report predicts that if New Zealand accelerates its data centre development, it could capitalize on a potential economic opportunity worth $120 billion over the next decade, up from the previous estimate of $70 billion.
According to the report, a construction program of this magnitude could stimulate economic activity throughout New Zealand's supply chain, creating around 3,500 jobs. Of these, 60% would be in electrical and mechanical trades, while civil trades would account for an additional 21%. Once operational, data centres typically sustain one job for every megawatt of capacity, resulting in about 1,000 ongoing jobs.
BCG New Zealand's managing director and partner, Kelly Newton, highlighted the growing global demand for data centres as a significant opportunity for New Zealand. The country boasts natural advantages such as renewable energy development, a stable political environment, and increasing investor interest, all of which could help it quickly capture its share of the global data centre market worth an estimated $120 billion in economic activity.
However, data centre development is not without its controversies. In the United States, large builds have faced local opposition, and in New Zealand, the Greens have called for a one-year moratorium on data centre builds, citing concerns about potential impacts on water and electricity supply.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
