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

Market Overview

The New Zealand data center power market is moving from a small enterprise base towards large cloud and AI campuses. Operators are ordering transformers, substations and backup systems years ahead, while the grid owner and government test how much new load the system can absorb.

Three forces are shaping the market: cloud region launches that pull in hyperscale tenants; AI projects led by Datagrid in Southland and by Contact Energy and CDC in Taranaki; and a stressed grid, with Transpower reporting in August 2026 that eight of the ten highest demand peaks on record came in the previous month.

In September 2025 Amazon launched its New Zealand region with a commitment of more than NZ$7.5 billion. In March 2026 Datagrid won consents for a 280 MW campus, and in August 2026 Elsewedy Electric was named supplier of four transformers for its substation.

Key Market Trends and Insights

• Cloud region investment: Amazon launched its Asia Pacific (New Zealand) Region in September 2025 with three Availability Zones and committed more than NZ$7.5 billion to construction and operation of its data centers.
• Colocation recapitalized: Spark completed the sale of 75% of its data center business to Pacific Equity Partners in January 2026, creating a platform with more than 23 MW built and a pipeline above 130 MW.
• AI campus scale: Datagrid's Makarewa campus in Southland won consents for 280 MW in March 2026, and its dedicated substation is rated at 360 MVA, according to an August 2026 announcement.
• Grid scrutiny: Finance Minister Nicola Willis said in August 2026 that officials will study measures so new data centers add generation, as Datagrid could use about 4.25% of national electricity at full load.

New Zealand Data Center Power Market Size and Forecast

The market is moving from small enterprise server rooms towards large colocation, cloud and AI campuses that need dedicated substations, high-capacity switchgear and high-density power architectures. Uninterruptible power supply systems lead in value today, while switchgear and power distribution grows fastest as grid exit points are specified ahead of construction. Colocation remains the largest customer group, but hyperscale and cloud demand advances quickest. Auckland stays the largest region, and southern and Taranaki sites drive the fastest regional growth. Sovereign cloud needs, renewable power purchase options and grid connection rules point to a durable build cycle, although approvals, generation supply and electricity price politics could slow the largest projects.

Key Takeaways: New Zealand Data Center Power Market

Cloud and AI Projects Turn a Niche Into a Build Cycle

Revenue is on course to more than triple, from USD 145.00 million in 2025 to USD 514.43 million in 2035 at a 13.5% CAGR, in our estimate. The Amazon region of September 2025 and the TenPeaks recapitalization of January 2026 bring the first large repeatable power system orders.

Switchgear and Hyperscale Demand Lead Growth

UPS Systems hold the largest share, but Switchgear and Power Distribution grows at an estimated 15.2% CAGR and Hyperscale and Cloud at an estimated 16.4% CAGR through 2035. Datagrid's order of four high-voltage transformers in August 2026 shows how early grid-side equipment is now committed.

Grid Capacity Becomes the Gating Factor

Transpower reported record winter demand in August 2026 while a growing pipeline of electricity-intensive projects awaits assessment, so generation and connection timing will decide which campuses proceed.

• Mercury signed a 140 MW power purchase option with Datagrid in March 2026
• Contact Energy and CDC explore 250 MW at Stratford in August 2026
• Government asked for further measures on electricity prices in August 2026

New Zealand Data Center Power Market Report Summary

Key Insight

Cloud regions, colocation recapitalization and AI campuses are lifting orders for power systems, while grid capacity limits timing. Auckland leads, and southern and Taranaki projects grow fastest.

Key Trends in the New Zealand Data Center Power Market

The New Zealand data center power market is being reshaped by grid-side equipment orders, generator-linked AI campus proposals, electricity price politics and large consented projects.

August 2026 - Datagrid Secures Four Transformers From Elsewedy Electric for Southland Substation

• Datagrid announced on 12 August 2026 that Elsewedy Electric will supply four high-voltage power transformers for its dedicated substation at Makarewa.
• The substation is rated at 360 MVA, roughly 340 MW, with one transformer held as backup, and is due to be commissioned in late 2027.
• Early orders show grid-side switchgear and transformers are now the longest lead items.

August 2026 - Contact Energy and CDC Explore a 250 MW Data Center at Stratford

• Contact Energy and CDC said on 10 August 2026 that they are exploring a data center of up to 250 MW near the retired Taranaki Combined Cycle gas plant.
• The site has an existing grid connection, 500 MW of consented grid-scale batteries and a nearby 150 MWac solar project.
• Co-located storage would raise demand for batteries, switchgear and power quality equipment.

August 2026 - Government Seeks Measures So Data Centers Do Not Lift Electricity Prices

• Finance Minister Nicola Willis said on 3 August 2026 that officials advised near-term data center rollouts would not push prices up.
• She asked for more work so new data centers bring additional generation, with Australian rules as a reference.
• Any duty to fund generation or storage on site could lift demand for generators and batteries.

March 2026 - Datagrid Wins Consents for 280 MW Campus and Mercury Signs Power Option

• Southland District Council, Environment Southland and Invercargill City Council approved the Makarewa campus and its dedicated grid exit substation in March 2026.
• The campus would draw 280 MW, making it the second-largest electricity user in New Zealand after the Tiwai Point aluminium smelter.
• Mercury signed a 140 MW power purchase option with Datagrid that month, tying supply to the project.

Key Insight

Early orders for transformers and switchgear, battery-backed generation sites and government scrutiny of electricity prices are the main forces, while grid timing remains the main risk.

Recent Market Developments in the New Zealand Data Center Power Market

Recent developments, presented from the most recent, show investment in Datagrid, an Auckland data center acquisition, the carve-out of Spark's facilities and new liquid cooling and power offers.

July 2026- Mercury Takes 12.7% Stake in Datagrid for USD 30 Million

• Mercury NZ committed USD 30 million for a 12.7% minority stake in Datagrid NZ, announced on 28 July 2026.
• The stake builds on the 140 MW power purchase option signed in March 2026 for the 360 MW Makarewa development.
• A listed generator holding equity in a load customer shows how closely power supply and delivery are linked.

April 2026 - Datacom Acquires T4's Auckland Data Centre for AI-Ready Upgrade

• Datacom completed the acquisition of T4's Auckland data center on 2 April 2026 for an undisclosed sum.
• The site has 5,200 square metres, including 1,500 square metres of column-free raised floor, and keeps existing customers.
• Planned upgrades for liquid cooling and high density imply new power distribution and backup spending.

January 2026 - Spark Completes Sale of 75% of Its Data Centers to Pacific Equity Partners

• The sale completed in January 2026 at an enterprise value of up to NZ$705 million, creating TenPeaks Data Centres under chief executive Michael Stribling.
• TenPeaks launched with more than 23 MW built across 11 facilities and a pipeline above 130 MW, including a North Shore greenfield site.
• Spark kept 25% and two board seats, and the platform can now fund power upgrades at Takanini and new builds.

November 2025 - Schneider Electric Launches Advanced Liquid Cooling Portfolio in New Zealand

• Schneider Electric introduced coolant distribution units from 105 kW to 2.5 MW for New Zealand data centers on 14 November 2025.
• Rear door heat exchangers cool up to 75 kW per rack, and the company said the range is being deployed in several large facilities.
• Higher rack densities tie cooling to UPS and power distribution sizing in AI-ready halls.

Key Insight

Equity in an AI campus developer, a major Auckland acquisition and new liquid cooling offers show suppliers and operators positioning for dense, high-capacity power architectures.

New Zealand Data Center Power Industry Segmentation

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

Market Breakup by Power Equipment

• UPS Systems
• Generators
• Switchgear and Power Distribution
• Others

UPS Systems lead on value, in our estimate, because every colocation hall and enterprise room needs ride-through protection, and vendors such as Vertiv promoted AI-ready power and thermal ranges to New Zealand partners in July 2026. Generators follow, supporting the standby needs of campuses such as Datagrid's, whose substation design in August 2026 includes a dedicated backup transformer. Switchgear and Power Distribution grows fastest at an estimated 15.2% CAGR through 2035, as Elsewedy Electric's four transformers ordered in August 2026 show. Others include batteries, power monitoring and cooling-linked power gear, which gain from Contact Energy's Stratford battery plans.

Market Breakup by Data Center Type

• Colocation
• Hyperscale and Cloud
• Enterprise and Government
• Edge and Others
• Others

Colocation leads, in our estimate, led by TenPeaks Data Centres, which launched in January 2026 with more than 23 MW built, and by CDC, which reported in March 2026 that its Hobsonville HV2 building is complete. Hyperscale and Cloud grows fastest at an estimated 16.4% CAGR through 2035, after Amazon's September 2025 region launch and Datagrid's consented AI campus. Enterprise and Government demand is steadier, with Datacom's April 2026 purchase of T4's Auckland site serving public and private clients. Edge and Others covers small regional and telecom sites.

Market Breakup by Facility Capacity

• Up to 5 MW
• 5 MW to 20 MW
• 20 MW to 100 MW
• Above 100 MW
• Others

Facilities of 5 MW to 20 MW lead, in our estimate, which fits TenPeaks Data Centres' 23 MW across 11 facilities at its January 2026 launch. Up to 5 MW covers enterprise, edge and regional rooms that grow modestly. The 20 MW to 100 MW band gains from CDC's Auckland campuses and the T4 upgrade at Datacom. Above 100 MW grows fastest at an estimated 18.6% CAGR through 2035 from a very small base, as Datagrid's 280 MW consent of March 2026 and the proposed 250 MW Stratford project of August 2026 would each need dedicated grid exits and large-scale switchgear.

Market Breakup by Region

• Auckland
• Wellington
• Canterbury
• Waikato
• Others

Auckland dominates, in our estimate, as it hosts the Amazon region, CDC's Silverdale and Hobsonville campuses and the Datacom and TenPeaks sites, and it grows at an estimated 12.8% CAGR through 2035 from a large base. Others is the fastest-growing group at an estimated 17.4%, because Southland's Datagrid campus and the Stratford project in Taranaki sit there. Wellington grows at 12.0%, as the home of Transpower, Contact Energy and government sites. Canterbury grows at 13.0% and Waikato at 14.2%, on regional cloud, edge and enterprise capacity.

Competitive Landscape in the New Zealand Data Center Power Market

Competition combines global power equipment makers, data center developers and electricity suppliers that now take equity in load. Entry barriers include grid connection access, equipment lead times, local service coverage and relationships with operators.

Schneider Electric

Schneider Electric, headquartered in Rueil-Malmaison, France, supplies UPS systems, switchgear, power distribution and EcoStruxure software for data centers. On 14 November 2025 it launched its advanced liquid cooling portfolio in New Zealand, including coolant distribution units from 105 kW to 2.5 MW, and said the range is being deployed in several large facilities.

Vertiv

Vertiv, headquartered in Westerville, Ohio, United States, sells UPS systems, power distribution, thermal management and monitoring for data centers through a regional channel. On 28 July 2026 it outlined its partner strategy for Australia and New Zealand as customers move from AI trials to deployment. In August 2026 it launched a 1.8 MW UPS aimed at AI data centers in Asia.

CDC Data Centres

CDC Data Centres, headquartered in Canberra, Australia, and held within Infratil's portfolio, operates hyperscale campuses at Silverdale and Hobsonville in Auckland. At a briefing on 26 March 2026 it reported more than 2.7 GW of total capacity and A$500 million of equity raised in February 2026, with Hobsonville HV2 complete. In August 2026 it began exploring a 250 MW data center at Stratford with Contact Energy.

Datagrid New Zealand

Datagrid New Zealand, led by founder and chief executive Remi Galasso, is developing a carbon-neutral hyperscale AI campus at Makarewa near Invercargill. It won consents for 280 MW in March 2026, signed a 140 MW power purchase option with Mercury that month, and on 12 August 2026 agreed to buy four high-voltage transformers from Elsewedy Electric for a 360 MVA substation, with commissioning targeted for late 2027.

Other players operating in the New Zealand data center power market include Mercury NZ, Datacom, Contact Energy, TenPeaks Data Centres, and Elsewedy Electric, alongside Transpower as grid owner, regional electrical contractors, equipment distributors, battery integrators and service providers supplying colocation, cloud, enterprise and government sites across New Zealand.

Key Insight

Competition rests on grid connection access, equipment lead times, local service coverage and operator relationships rather than price, while electricity suppliers taking equity in load could reshape positions.