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Digital infrastructure now underpins large parts of the New Zealand economy. It is a highly attractive asset class for investors and a key investment decision for businesses looking to optimise and streamline operations.
UNCTAD’s World Investment Report 2025 identifies the digital economy as the fastest-growing sector of the global economy, with greenfield investment nearly tripling since 2020 to US$360 billion in 2024.
Digital infrastructure can refer to two different but overlapping categories:
- infrastructure that supports the storage, processing, and transmission of digital information, such as data centres, high-speed broadband networks and other communications infrastructure, and
- physical assets and infrastructure that are increasingly integrated with and dependent on digital elements for their operation, such as energy infrastructure with sophisticated digital control systems.
Emerging trends in the sector
We have observed an increase in digital infrastructure projects during 2024 and 2025 and identify the following key trends in this sector:
- Investment in data centres: The ever-growing demand for data storage and compute workload, combined with a focus on data sovereignty and reducing latency via edge-computing, presents a significant opportunity for investment in data centres in New Zealand.
- Smart buildings and connected infrastructure: Integrating technology into daily operations is now essential for leveraging digital efficiencies in business. Smart buildings use technology to improve the efficiency of activities within. Transport infrastructure customers are incorporating autonomous vehicles into their operations. We anticipate a continuing focus on integrated technology and managed network infrastructure across buildings, physical infrastructure and operational areas such as ports and airports.
- Cross-industry involvement: Digital infrastructure is no longer confined to the IT and telco sectors. Participants across a wide range of sectors, including health, ports, airports, manufacturing, transport and logistics, are investing in sophisticated technology to optimise and streamline operations, often integrating it with more traditional heavy equipment and infrastructure.
- Focus on sustainability and energy efficiency: There is an increasing emphasis on the environmental impact of digital infrastructure. The response includes prioritising sustainable design, sourcing renewable energy, and ensuring energy-efficient operations.
- Critical infrastructure regulation: Increased reliance on digital infrastructure and use of digital services has necessitated re-evaluation of our critical infrastructure regulation. The Government is considering minimum standards for communications infrastructure.1 Additionally, proposed reforms to our emergency management legislation, will affect critical infrastructure operators.2
Looking ahead
The digital infrastructure sector in New Zealand is set for significant growth, offering substantial investment opportunities and operational efficiencies across various industries. For businesses and investors, understanding the legal implications and contracting effectively for digital infrastructure procurement is crucial to successfully capitalising on these developments. Our experts can provide the necessary legal expertise and guidance to help you navigate these complexities and seize the opportunities ahead.
1. https://www.rnz.co.nz/news/political/564450/new-standards-may-be-needed-for-nz-s-critical-communications-infrastructure
2. https://www.civildefence.govt.nz/cdem-sector/legislation/emergency-management-bill
