New Zealand Data Center Cooling Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)

Market Overview

The New Zealand data center cooling market is moving from a conventional air-cooled base towards hybrid designs in which liquid loops handle the hottest chips and outside air does the rest. Operators are building for artificial intelligence workloads while the grid, regulators and communities ask harder questions about electricity and water.

Three forces are shaping demand: hyperscale and sovereign cloud capacity, led by a new Amazon Web Services region in Auckland; rack densities above 100 kW, which require liquid cooling; and South Island and Taranaki campuses designed around free cooling, closed-loop water use and long-term renewable supply.

In November 2025 Schneider Electric brought its Motivair liquid cooling range to New Zealand. In March 2026 Datagrid won consent for a 280 MW campus near Invercargill, and in August 2026 CDC Data Centres and Contact Energy announced plans to explore a 250 MW site in Taranaki.

Key Market Trends and Insights

• Operator pipeline: TenPeaks Data Centres launched in February 2026 with 23 MW of IT capacity across 11 sites and a development pipeline above 130 MW.
• Free cooling at scale: Datagrid targets a power usage effectiveness below 1.1 at its 280 MW Southland campus, relying on outside air in a climate averaging 9 to 10 degrees Celsius.
• Liquid cooling arrives: Schneider Electric's coolant distribution units for New Zealand range from 105 kW to 2.5 MW and target racks above 100 kW.
• Cloud region capital: Amazon Web Services opened its Auckland region in September 2025 as part of an investment commitment above NZ$7.5 billion.

New Zealand Data Center Cooling Market Size and Forecast

The market is shifting from chilled water and direct expansion systems towards free cooling and liquid cooling as artificial intelligence racks raise heat loads. Colocation operators hold the largest revenue today, while hyperscale campuses add capacity fastest. Racks below 30 kW still account for most installed equipment, yet the highest density tier advances quickest. Auckland remains the centre of demand, and Southland and Taranaki, grouped within Others, grow quickest as large campuses move through consenting. Closed-loop designs, renewable power contracts and efficiency targets point to a durable change in technology mix, though grid capacity and community acceptance limit build timing.

Key Takeaways: New Zealand Data Center Cooling Market

Campus Build-Out Lifts Cooling Demand

Revenue is on course to more than triple, from USD 95.00 million in 2025 to USD 308.50 million in 2035 at a 12.5% CAGR. TenPeaks, CDC Data Centres, Datacom and Datagrid all announced expansion or acquisition plans in 2026, and each needs chillers, air handlers and increasingly liquid loops.

Liquid and Free Cooling Lead the Technology Shift

Chilled Water CRAH Systems hold the largest share, but Liquid Cooling Systems grow at an estimated 22.0% CAGR and Rack Density above 100 kW at an estimated 27.0% CAGR through 2035. Datacom plans liquid cooling at its newly acquired Auckland site, while Datagrid designs its Southland campus around outside air.

Power and Water Scrutiny Shapes Cooling Choices

Analysis published in August 2026 suggested that the Southland and Taranaki campuses alone could draw about 13% of current national electricity supply, so efficiency and water claims now influence consents and customer decisions.

• Datagrid says its Southland campus will draw no groundwater
• CDC will explore net zero water cooling at Stratford
• Schneider Electric promotes closed-loop chillers needing no public water

New Zealand Data Center Cooling Market Report Summary

Key Insight

Demand is shifting from air-based systems towards free cooling and liquid loops as artificial intelligence racks spread. Auckland leads today, while southern and Taranaki campuses grow fastest.

Key Trends in the New Zealand Data Center Cooling Market

The New Zealand data center cooling market is being reshaped by sovereign cloud investment, liquid cooling launches, free cooling designs for southern campuses and growing debate over power and water.

August 2026 - Industry Strategy Calls for Predictable Consenting and Efficient Data Center Growth

• DataCentres New Zealand, backed by Tech New Zealand, released a data center strategy on 19 August 2026 urging priority development zones and a ministerial advisory group.
• Analysis published that month said the Southland and Taranaki campuses could draw up to 6,000 GWh a year, about 13% of current supply.
• Scrutiny of load favours low-water, high-efficiency cooling.

July 2026 - Datagrid Defends Free Cooling Plan at Southland Community Meeting

• Residents met in Invercargill on 23 July 2026 to question the NZ$3.5 billion Makarewa campus, which Datagrid did not attend.
• Datagrid says the site will draw no groundwater and will use free cooling in a region averaging 9 to 10 degrees Celsius.
• Mercury had bought a 12% stake in Datagrid for NZ$53 million, tying the project to new generation.

March 2026 - Datagrid Secures Consent and a 140 MW Power Deal for Southland

• Southland District Council, Environment Southland and Invercargill City Council granted consent on 12 March 2026 for a campus expected to draw 280 MW.
• Datagrid signed a 15-year, 140 MW option agreement with Mercury, with construction targeted from mid-2026 and full build-out in 2028.
• The design targets a power usage effectiveness below 1.1, implying dry coolers and economizers rather than water-hungry towers.

November 2025 - Schneider Electric Brings Motivair Liquid Cooling to New Zealand

• Schneider Electric announced coolant distribution units from 105 kW to 2.5 MW, ChilledDoor rear door heat exchangers and Dynamic Cold Plates for New Zealand sites.
• Heat Dissipation Units reject up to 100 kW and suit sites without water access, supporting racks above 100 kW.
• Several large New Zealand data centers are deploying the range, signalling a first wave of liquid projects.

Key Insight

Free cooling designs, liquid cooling launches and closed-loop water use are the main structural forces, while grid capacity and community acceptance remain the main risks to build timing.

Recent Market Developments in the New Zealand Data Center Cooling Market

Recent developments, presented from the most recent, show a new Taranaki campus proposal, a Datacom acquisition, the creation of TenPeaks and the opening of an Amazon Web Services region.

August 2026 - Contact Energy and CDC Data Centres Explore a 250 MW Stratford Campus

• The companies announced on 10 August 2026 plans to seek consent for a campus beside Contact's retired Taranaki gas plant.
• The facility would carry 250 MW of IT load, about 350 MW at peak, backed by co-located batteries and a long-term power contract.
• CDC plans closed-loop cooling and will explore rainwater collection; neither party has committed to build.

April 2026 - Datacom Acquires T4's Auckland Data Center and Plans Liquid Cooling

• Datacom announced on 2 April 2026 that it had taken over T4's 5,200 square metre Auckland facility with 1,500 square metres of usable floor.
• It is Datacom's fifth sovereign data center in New Zealand, backed by a commitment of more than NZ$200 million.
• Planned upgrades will support high-density, artificial intelligence workloads, including liquid cooling.

February 2026 - TenPeaks Data Centres Launches After Spark Carve-Out

• TenPeaks launched on 25 February 2026 with 11 facilities, 23 MW of IT capacity and more than 130 MW of pipeline on owned land.
• Pacific Equity Partners holds 75% and Spark 25%, following a sale first announced in August 2025 and completed in January 2026.
• Its newest Takanini site reportedly achieves a power usage effectiveness below 1.2, and new builds target dense workloads.

September 2025 - Amazon Web Services Opens Its Asia Pacific (New Zealand) Region in Auckland

• Amazon Web Services introduced the region on 2 September 2025 with three Availability Zones.
• It plans to invest more than NZ$7.5 billion in New Zealand data centers, powered by a renewable supply agreement with Mercury.
• The region anchors hyperscale cooling demand in Auckland.

Key Insight

A Taranaki campus proposal, a sovereign operator acquisition, a standalone operator launch and a new cloud region show capital committing to cooling-intensive capacity.

New Zealand Data Center Cooling Industry Segmentation

The Expert Market Research’s report on the New Zealand Data Center Cooling Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Cooling Technology

• Chilled Water CRAH Systems
• Direct Expansion CRAC Systems
• Free Cooling Systems
• Liquid Cooling Systems
• Others

Chilled Water CRAH Systems lead on value, in our estimate, because most colocation halls in Auckland still use chillers and air handlers. Direct Expansion CRAC Systems serve smaller enterprise and edge rooms. Free Cooling Systems gain share as Datagrid, in March 2026, targeted a power usage effectiveness below 1.1 in Southland. Liquid Cooling Systems grow fastest at an estimated 22.0% CAGR through 2035, after Schneider Electric launched Motivair units in November 2025 and Datacom announced liquid cooling plans in April 2026. Others include rear door heat exchangers, immersion tanks and heat reuse equipment.

Market Breakup by Data Center Type

• Colocation Data Centers
• Hyperscale Data Centers
• Enterprise and Government Data Centers
• Edge Data Centers
• Others

Colocation Data Centers lead, in our estimate, with TenPeaks operating 11 facilities in February 2026 and Datacom adding a fifth sovereign site in April 2026. Hyperscale Data Centers grow fastest at an estimated 15.5% CAGR through 2035, supported by the Amazon Web Services region opened in September 2025 and the 280 MW Datagrid consent of March 2026. Enterprise and Government Data Centers shrink in share as workloads move to sovereign clouds. Edge Data Centers grow steadily on telecom and content delivery sites, usually with compact air cooled units.

Market Breakup by Rack Density

• Up to 10 kW per Rack
• 10 to 30 kW per Rack
• 30 to 100 kW per Rack
• Above 100 kW per Rack
• Others

10 to 30 kW per Rack leads, in our estimate, as general cloud and colocation halls still dominate installed capacity. Up to 10 kW per Rack declines in share as legacy enterprise rooms close. 30 to 100 kW per Rack grows quickly as CDC Data Centres, in March 2026, reported closed-loop designs ready for fully liquid-cooled hardware and NVIDIA DGX-Ready certification at its Australian and New Zealand sites. Above 100 kW per Rack grows fastest at an estimated 27.0% CAGR through 2035, since Schneider Electric's November 2025 launch targets exactly these racks.

Market Breakup by Region

• Auckland
• Wellington
• Canterbury
• Waikato
• Others

Auckland dominates, in our estimate, as the Amazon Web Services region, the TenPeaks campuses, Datacom's two sites and CDC's Hobsonville and Silverdale campuses sit there, and it grows at an estimated 12.2% CAGR through 2035 from a large base. Others is the fastest-growing region at an estimated 16.0%, since Datagrid's Southland campus and the proposed CDC site in Taranaki are grouped here. Waikato grows at 12.8% on Hamilton colocation demand, Canterbury at 12.0% on enterprise and edge sites, and Wellington at 11.4% on government and financial workloads.

Competitive Landscape in the New Zealand Data Center Cooling Market

Competition combines global thermal management suppliers, sovereign and hyperscale operators that specify their own designs, and local engineering contractors. Entry barriers include certification for dense hardware, service coverage, grid access and credible water and efficiency commitments.

Schneider Electric

Schneider Electric, headquartered in Rueil-Malmaison, France, supplies power and cooling systems for data centers through its Secure Power division. In November 2025 it brought its Motivair liquid cooling range to New Zealand, including coolant distribution units from 105 kW to 2.5 MW, ChilledDoor rear door heat exchangers and Heat Dissipation Units for racks above 100 kW. The company says its closed-loop chillers need no public water.

CDC Data Centres

CDC Data Centres, headquartered in Canberra, Australia, operates hyperscale campuses in Auckland, including Hobsonville and Silverdale. In March 2026 it reported closed-loop cooling that supports fully liquid-cooled hardware, a Water Usage Effectiveness of 0.01 and NVIDIA DGX-Ready certification. In August 2026 it joined Contact Energy to explore a 250 MW Stratford campus.

Datacom

Datacom, headquartered in Auckland, operates sovereign data centers across New Zealand and is a launch partner of the Amazon Web Services region. In April 2026 it acquired T4's 5,200 square metre Auckland facility, its fifth New Zealand site, and said it will invest in liquid cooling for high-density workloads. The company has committed more than NZ$200 million to its New Zealand data center capability.

TenPeaks Data Centres

TenPeaks Data Centres, based in Auckland, was carved out of Spark New Zealand, with Pacific Equity Partners holding 75% and Spark 25%. It launched in February 2026 with 11 facilities, 23 MW of IT capacity and a pipeline above 130 MW across three Auckland campuses. Its Takanini site reportedly achieves a power usage effectiveness below 1.2.

Other players operating in the New Zealand data center cooling market include Datagrid, Amazon Web Services, Microsoft, DCI Data Centres, and Spark, alongside regional mechanical contractors, independent cooling distributors, electrical integrators and equipment importers supplying chillers, air handlers and liquid cooling hardware to operators across New Zealand.

Key Insight

Competition rests on dense hardware certification, service coverage, grid access and credible efficiency and water commitments rather than equipment price alone, while operator ownership changes could reshape buying power.