30 July 2026
Greg Davidson, CEO - Datacom
AI is reshaping how organisations operate, compete and deliver value. It is a given that AI will influence our future, but the focus needs to be on ensuring New Zealand is well positioned to benefit from it over the long term.
Much of the conversation around AI focuses on models, applications and emerging use cases. Those are important discussions, but they can distract from a more fundamental reality: AI depends on strong foundations. Compute capacity, connectivity, energy, modern infrastructure and skilled people will play a significant role in determining which organisations, and which countries, are best positioned to create value from AI.
New Zealand has an opportunity to approach this deliberately. We don’t need to outspend larger economies, but we do need to make well considered investments in the capabilities that will support innovation, productivity and resilience for years to come – that starts with the right digital infrastructure. Those foundations will also play an important role in ensuring New Zealand remains an attractive place to build, scale and export technology-enabled products and services.
As AI adoption grows, demand for data processing, storage and high-performance computing is accelerating. At the same time, global supply chains remain under pressure and competition for advanced technology infrastructure is increasing. Organisations are rightly thinking more carefully about where critical workloads run, how they maintain continuity and what level of control they have over the systems that underpin their operations.
Resilience is becoming a strategic consideration, not just a technical one. Businesses, public services and communities all rely on digital technology and the ability to maintain continuity is essential. Whether the challenge comes from supply chain disruption, cyber threats or broader geopolitical uncertainty, organisations need confidence that critical services can continue operating when conditions become more complex.
Importantly, this isn’t an argument for looking inward or stepping away from global technology platforms. New Zealand benefits enormously from international innovation and investment. The real opportunity lies in finding the right balance: making the most of global platforms while continuing to build meaningful local capability in the areas that matter most.
The same principle applies to AI. Success will not come from deploying the latest technology for its own sake. The organisations seeing the greatest value are typically those with a clear understanding of the outcomes they want to achieve, supported by governance, infrastructure and expertise to scale those outcomes over time.
At Datacom, this belief is reflected in the investments we are making ourselves. Earlier this year, we expanded our Auckland data centre footprint through the acquisition of T4’s Auckland facility, bringing our New Zealand network to five data centres and our direct investment over $200 million. The investment we have made – and continue to make – is designed to support growing demand for AI-ready, high-density workloads while strengthening in-country capability and resilience.
The investment is not about infrastructure for infrastructure’s sake. It reflects our view that organisations need reliable foundations to modernise, improve productivity and make practical use of emerging technologies. As demand for AI continues to grow, those foundations will become even more important.
New Zealand has many advantages as it navigates this transition. We have a strong technology sector, world-class talent and a track record of innovation. The challenge is to continue building the capability and infrastructure that will allow us to compete, adapt and grow in an increasingly digital economy. If we get those foundations right, we will be better positioned to grow technology businesses and export industries that contribute to New Zealand’s long-term prosperity.
The organisations – and the countries – that succeed over the next decade will be those that combine ambition with strong foundations, investing in the capability, infrastructure and resilience needed to realise the benefits of AI.