Australia's CDC explores potential data center in New Zealand with Contact Energy

Australian data center operator CDC has announced it is evaluating the development of a new data center in New Zealand, in partnership with utility Contact Energy. The proposed facility would be located in Stratford, on the North Island's Taranaki region, on land adjacent to Contact Energy's former Taranaki Combined Cycle power station.

The site is attractive due to its existing energy and connectivity infrastructure, including high-capacity terrestrial and subsea fiber links that provide direct connection to Auckland, where New Zealand's international cable systems land. CDC said the potential facility would be designed to support critical and sovereign workloads, including government and public sector systems, healthcare and emergency services, scientific and research computing, banking and payments, as well as emergency and critical communications networks.

Electricity for the facility would be supplied under a long-term contract, backed by Contact Energy's renewable development pipeline. CDC's existing New Zealand data centers are already powered by 100 percent renewable energy, and the proposed Stratford facility would also feature a closed-loop cooling system, consistent with the company's other sites.

CDC emphasized that the project remains at an "exploration stage," and any development would be subject to due diligence, consenting, and commercial requirements. "CDC builds the infrastructure that governments, health systems, emergency services, researchers and financial institutions depend on. This is where sovereign data is held, where critical systems stay online, and where the most sensitive information stays in country," said CDC founder and chief executive Greg Boorer. "Stratford has the potential to bring together renewable generation, grid connection, fiber and a skilled technical workforce in a way very few places can. That combination is why we are looking at it seriously."

The announcement follows CDC's recent plan to develop a new campus in Sydney, revealed last week. Founded in 2007 and backed by Infratil, CDC operates nearly 20 sites across Sydney, Canberra, Melbourne, and Auckland. The company currently has more than 600MW of data center capacity in operation and development across these regions, with a future development pipeline of an additional 1.6GW through 2034.

The potential New Zealand project underscores the growing demand for sovereign data infrastructure in the Asia-Pacific region, particularly for government and critical public services. As data sovereignty becomes a priority for governments worldwide, the development of localized, renewable-powered data centers is likely to gain further momentum, positioning CDC to capitalize on this trend in the New Zealand market.