Microsoft's New Zealand data centre region approved by Overseas Investment Office
16 September 2020 | Abigail Opiah
Microsoft (NASDAQ: MSFT) has gained Overseas Investment Office approval and is set to build its giant cloud computing data centre in Auckland, New Zealand.
In May, the company announced its plans to establish its first data centre region in New Zealand, which was described by Microsoft as a ‘major milestone’ toward delivering enterprise-grade cloud services in the country.
The New Zealand data centre region will be the latest addition to Microsoft’s global data centre footprint.
The Overseas Investment Office approval revealed that Microsoft’s acquisition of interests in non-sensitive land used in carrying on business in New Zealand will be for a consideration exceeding $100 million.
The investment involves the acquisition of interests in land for the operation of data centres, the value of which is not yet confirmed but will exceed $100 million according to the filed report.
“The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character,” said the document.
“The Applicant has also demonstrated financial commitment to the investment. The Minister of Finance has determined that the Investment is not contrary to New Zealand’s national interest.”
Microsoft aims to fuel new growth that will accelerate digital transformation opportunities across New Zealand. The company has over 60 announced regions across the globe.
“This significant investment in New Zealand’s digital infrastructure is a testament to the remarkable spirit of New Zealand’s innovation and reflects how we’re pushing the boundaries of what is possible as a nation,” said Vanessa Sorenson, general manager, Microsoft New Zealand back then.
“The Fletcher School’s Digital Evolution Index characterises New Zealand as a ‘standout nation’ demonstrating to the world what the future might look like. I’m confident this investment will help accelerate our digital evolution.”