Amazon Launches Auckland Cloud Region, Pledges 1000 Jobs

Amazon Web Services (AWS) has officially opened its new data centres in Auckland, a project the company says will inject billions into the New Zealand economy and create more than 1000 jobs, RNZ reported.

According to a report by RNZ, AWS first unveiled the $7.5 billion investment in 2021, with plans to open in 2024, but construction delays pushed back the launch. On Tuesday, the company confirmed the centres were now “live,” adding they would support an average of 1000 full-time equivalent jobs and contribute an estimated $10.8 billion to the economy.

AWS country manager Manuel Bohnet said the data centres were spread around Auckland for resilience against flooding and power outages while maintaining low latency. He said the roles created would not just be in operations but also in telecommunications and wider supply chains, reported RNZ.

The launch also saw the creation of a new Asia Pacific (New Zealand) Region for AWS cloud services, putting New Zealand alongside 37 other regions worldwide.

RNZ reported, Prime Minister Christopher Luxon hailed the opening, calling it the largest publicly announced tech investment in the country. He argued it would help businesses embrace cloud technology, improve productivity, and accelerate the digitisation of government services.

But Labour leader Chris Hipkins criticised Luxon for “claiming credit” for the long-planned project, accusing him of backpedalling on links to the government’s partial reversal of the foreign buyers ban.

Tech commentator Peter Griffin told RNZ the economic forecasts should be treated with caution, warning job creation and GDP benefits were likely overstated. He also noted AWS and Microsoft were making similar claims with their New Zealand data centres.

Energy use remains a sticking point. Data centres are projected to consume 4 per cent of the world’s electricity by 2026, and the government estimates local centres could account for up to 7 per cent of New Zealand’s power demand by 2030. AWS has pledged to source renewable energy but admitted the facilities would still draw from the national grid, reported RNZ.

According to RNZ, despite concerns, Griffin said the investment showed confidence in New Zealand’s tech sector but urged caution over sovereignty and reliance on global tech giants for cloud and artificial intelligence infrastructure.