In a significant advancement for New Zealand’s digital infrastructure, Microsoft has launched the country’s first hyperscale cloud region. This milestone is an essential part of Microsoft’s nearly 40-year presence in New Zealand and is poised to bring substantial transformative benefits for both businesses and individuals.

The new data center region aims to speed up the adoption of cloud technology. To support this transition, Microsoft plans to train 100,000 New Zealanders in artificial intelligence (AI) and digital skills over the next two years. This initiative is designed to cultivate a digitally skilled workforce that fosters long-term economic growth.

Commitment to Sustainability
Microsoft has embedded sustainability into the core of its new hyperscale cloud region, which will operate on 100% carbon-free electricity. This is achieved through a decade-long agreement with Contact Energy, utilizing renewable energy sources from the Te Huka 3 geothermal power station. This facility contributes 51.4 megawatts of renewable energy annually to New Zealand’s energy grid.

Moreover, the data center integrates water-free cooling technology to maintain optimal conditions for storage while conserving water resources.

Economic and AI Prospects
This investment is expected to yield notable economic advantages. A study by Accenture for Microsoft predicts that generative AI could contribute an additional $76 billion to New Zealand’s economy by 2038. Public cloud services and infrastructure are crucial for leveraging AI to boost productivity and economic growth.

Microsoft’s programs are geared toward making AI accessible to all New Zealanders, regardless of their current career stage or community background, through upskilling and collaboration with local organizations, schools, and businesses.

Fostering an Inclusive Workforce
To tackle the talent gap in West Auckland’s creative technology sector, Microsoft is collaborating with Te Pūkenga. This partnership concentrates on reskilling marginalized groups, including Māori, Pacific communities, and women. The initiative offers micro-credentials for high school students and lifelong learners while providing training for educators in secondary schools.

Empowering Local Innovators
The new hyperscale cloud region is set to empower New Zealand innovators, enabling them to expand their operations globally and deliver improved services to their customers. Microsoft’s ongoing partnerships with local entities highlight its dedication to modernizing the nation’s digital capabilities and cultivating a workforce that is prepared for future demands.

This development marks a transformative moment for New Zealand’s technological landscape, solidifying Microsoft’s role as a driver of innovation and sustainability in the region.

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