High growth in data traffic over the last few years has also see the Internet / Media industry displaying robust growth in use of data centre services.
Digital Media organisations were amongst the first category to migrate to public clouds and will be a key driver of growth within data centres over the next five years, as services such as online video and online gaming become more popular.
According to Harpur, the Education vertical has increased adoption of outsourced data centre services, although a relatively slow adopter of cloud services compared to some overseas markets.
Most New Zealand educational institutions still have a significant proportion of their IT systems on-premise, though a few of them, such as the Christchurch PolyTechnic Institute of Technology have adopted the cloud relatively fast.
Data Centre Providers
There are 3 major categories of outsourced data centre providers in the New Zealand market:
•IT Service Providers account for the largest segment in the market and often lease wholesale or co-location space to smaller local cloud providers - Datacom and IBM are the two largest providers
•Telcos operating in New Zealand that own their own data centres include Spark Digital (which dominates this market segment), Vocus, Vodafone and Vector
•Specialist data centre providers are carrier neutral and generally have a high level of expertise in the data centre services industry.
Due to the relatively small size of the New Zealand market, the specialist data centre providers segment is relatively small and under-developed. The major local provider, Revera, has been acquired by Spark Digital.
According to findings, the average power density requirement of data centres is now up to 30KW to 40KW per rack and continues to increase in line with the increasing demand for high-performance computing applications.
As rack densities decrease, Harpur believes physical data centre space needed declines - this trend impacts data centre providers offering co-location services on both a retail and wholesale level.
Going forward, Harpur believes data centre providers have several challenges.
“Securing sites in CBD locations (where property prices are at a premium and continue to rise; especially in Auckland), and gaining access to sufficient power is increasingly challenging,” he adds.
“New Zealand’s relatively small market size and the lack of suitable locations to build additional capacity exacerbate this issue making it increasingly difficult for data centre owners to plan for additional capacity.”