CDC's new Auckland datacentres 'out of the ground' and 80 per cent booked

CDC's new Auckland datacentres 'out of the ground' and 80 per cent booked

Facilities built to provide higher rack density than is currently available in the New Zealand

A rendering of CDC's Hobsonville datacentre

A rendering of CDC's Hobsonville datacentre

Credit: Supplied

NZX-listed Infratil, a 48 per cent shareholder in Canberra Data Centres (CDC), is reporting progress on its two large datacentre builds in Auckland, with both sites now "out of the ground".

That means in-ground work has been done and the construction of above-ground infrastructure is under way.

The company said space within the two facilities was already 80 per cent contracted, reserved or subject to a first right of refusal.

At around the same time last May as CDC confirmed its plans to build in New Zealand, Microsoft announced its own plans to establish a local datacentre region.

While CDC is known to provide datacentres for Microsoft's Australian cloud region, neither company has so far officially confirmed whether that is also the case in New Zealand.

CDC acquired two parcels of land in northern Auckland in 2020, one in Silverdale, referred to as site one, and one in Hobsonville, site two.

The Silverdale site one is around 11,000 square meters with expansion capacity available while the other site is around 7000 square meters.

Resource and building consents have been received for both developments and electricity supply was reported to be on track.

During construction of the local facilities, Infratil’s local expertise was being used to mitigate construction risks alongside key CDC personnel.

A presentation by Infratil manager Will Smales said the digital infrastructure sector came into the pandemic with "positive tailwinds", enjoying  exponential growth in data usage and need for connectivity fuelling requirements for investment into datacentres, mobile towers and fibre.

"Infratil exposed shareholders early to these trends as global demand digital infrastructure surges," Smales said.

Datacentres in particular were high margin, long-dated assets with "strong defensive characteristics

CDC operates a range of datacentres in Australia, originally in Canberra but now also in Sydney.

The local datacentres are built to provide higher rack density than is currently available in the NZ market, Infratil reported today.

CDC said it expected to commission both of its New Zealand datacentres early in the 2022 calendar year.

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