New Zealand’s Datacom group CEO Greg Davidson has called for a national conversation regarding the ownership and profits generated by data centres in the country. Davidson, leading New Zealand’s largest IT services company with projected revenues of $1.6 billion for 2026, highlighted the challenges posed by rising costs associated with artificial intelligence (AI) as major software companies shift to consumption-based pricing models. He also referenced a Talbot Mills survey conducted in July, indicating a lack of awareness among IT leaders about data location amid global instability. Davidson remarked on New Zealand and Australia’s reliance on global technology leaders, noting their limitations in manufacturing silicon and developing large language models compared to countries like South Korea, Taiwan, China, and the US, which possess the necessary resources and infrastructure.
Why It Matters
The discussion around data centre ownership is increasingly pertinent as global dependence on technology grows. New Zealand’s IT sector faces challenges due to its geographical and resource constraints, making it reliant on international markets for advanced tech solutions. The shift to consumption-based pricing by AI companies may escalate operational costs for local businesses, affecting competitiveness. Understanding data ownership and location is critical, especially in a world where cybersecurity and data privacy are major concerns, underscoring the need for robust policies to protect national interests and foster innovation within New Zealand’s digital landscape.
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