Prime Minister Luxon Announces Amazon’s $7.5 Billion Investment in New Zealand

Prime Minister Christopher Luxon has outlined the significant plans for Amazon to invest $7.5 billion in New Zealand. During an interview on Newstalk ZB with Mike Hosking, Luxon confirmed that Amazon Web Services, the company’s cloud storage and data centre division, will establish its operations in the country. This investment is set to create approximately 1,000 jobs and is projected to boost New Zealand’s GDP by $11 billion.

Luxon emphasized the magnitude of this investment, stating, “That’s probably the largest ever, certainly publicly announced technology investment I would imagine in New Zealand, by an international tech firm.” Amazon initially announced its plans for this multibillion-dollar investment in September 2021, aiming to drive innovation, enhance productivity, and position New Zealand as a leader in digital commerce for future generations.

A Major Boost for the Economy

According to Amazon, the establishment of the data centre zone is anticipated to contribute $10.8 billion to New Zealand’s GDP over the next fifteen years. This estimate underscores the potential economic impact of the investment, which aligns with the government’s efforts to attract foreign capital.

Recent property records indicate that Amazon has acquired three parcels of land in Westgate, totaling 41,774 square meters (or approximately 4.18 hectares), an area equivalent to four rugby fields. The most recent acquisition was approved by the Overseas Investment Office (OIO) on December 16, 2022, allowing Amazon to purchase a 0.2 hectare plot at 77 Fred Taylor Drive in northwest Auckland for an undisclosed sum.

In March 2022, the OIO had already granted Amazon the green light to acquire additional land for the establishment of a business cluster of data centres in Auckland, with the purchase price estimated between $250 million and $350 million.

Welcoming Foreign Investment

This announcement comes on the heels of a government policy change allowing wealthy foreigners with an investor residence visa to purchase homes in New Zealand. Luxon stated that this shift positions the country as more inviting to affluent investors, who contribute significantly to the economy but face challenges in establishing a permanent presence.

The Prime Minister’s remarks underline a broader strategy to stimulate economic growth through foreign investment and technology development. With Amazon’s significant commitment, New Zealand aims to enhance its digital infrastructure and create a more competitive environment for innovation.

As the country prepares to welcome Amazon’s investment, the focus remains on maximizing the benefits for local communities and ensuring that the growth translates into sustainable economic development for all New Zealanders.