New Zealand’s datacentre sector has a key role in keeping the country relevant and connected as the world transitions to an increasingly digital future in almost every facet of life.
The sector is not new here, with around 65 datacentres already operating in New Zealand, however there is increasing community resistance to the newer generation of hyper-scale datacentres which can delay projects and undermine trust.
At the 2026 New Zealand Cloud and Datacentre Convention, BBG Senior Vice President Piet de Jong argued that the sector needs to make a stronger case for the strategic national value of datacentres. Piet explained that developers need to treat stakeholder engagement as a core part of project strategy – not a consultation exercise added after major decisions have been made.
Why are communities resisting datacentres?
Opposition to large-scale datacentre developments is active across New Zealand and Australia. Although it has not stopped investment or resource consent applications, resistance can intensify when communities feel they have been approached too late or that engagement by a distant multinational is simply a box-ticking exercise.
These concerns should not be dismissed. They reflect genuine questions about energy affordability, environmental impacts, artificial intelligence and whether local communities will share in the benefits. Despite their relative newness and importance to our society and economic future, data centres do not enjoy exemption from social expectations about sustainability and ESG.
Energy pressures are shaping public opinion
High wholesale energy costs have placed pressure on regional towns. Mills and factories – often major local employers – have become uneconomic, contributing to closures and job losses.
Against this backdrop, communities may reasonably ask why datacentres should receive access to electricity while households struggle with their bills and local industries face rising costs.
Developers need to answer this question directly. That means explaining why a facility is needed, why a particular location has been chosen, how it will affect local energy use and what value it will create for the host community.
AI and environmental concerns add to the resistance
Public uncertainty about artificial intelligence is also influencing perceptions. Datacentres support many digital services beyond AI, but the sector has not always explained their role – or their wider economic value – in terms that matter to communities.
Environmental concerns are equally important. New Zealanders expect natural resources to be used responsibly. If the environmental costs are perceived as local while the benefits flow offshore, the sector will struggle to earn public support.
Clear communication cannot replace responsible project design. It can, however, help communities understand the evidence, scrutinise trade-offs and influence decisions before positions become entrenched.
Datacentres need a stronger national narrative
Supply-chain infrastructure offers a useful comparison. The pandemic and international fuel disruptions demonstrated, in practical and financial terms, why resilient national supply chains matter. That helped move supply-chain issues from operational discussions into national policy debates.
Datacentres require a similarly clear narrative. They should be discussed not simply as individual property developments, but as part of New Zealand’s digital infrastructure and its future productivity, resilience and economic competitiveness.
This narrative must still be supported by credible local benefits. Appeals to the national interest will not succeed if communities believe they are being asked to carry the costs without sharing the value. The sector will persistently be in crisis management mode.
Six principles for effective stakeholder engagement
BBG’s research paper Not in my backyard identifies six principles that can help infrastructure developers build social licence:
- Start before positions harden. Engage communities early and regularly – ideally before plans are finalised.
- Explain why, not only what. People want to know why a project is needed, why the location was selected and whether its benefits justify its impacts.
- Make local benefits visible. Understand what the community needs and values, then identify meaningful ways for the project to support it.
- Be transparent from the outset. Share relevant information early, acknowledge uncertainty and avoid creating the impression that important decisions are being concealed.
- Design for acceptance, not just approval. Build social licence into project design rather than adding stakeholder engagement after major decisions have been made.
- Assume scrutiny is permanent. In a connected environment, project decisions and commitments will remain visible and open to challenge.
Social licence must be built into project strategy
Social licence is the continuing acceptance of a project by the people affected by it. It is not the same as regulatory approval and cannot be secured through a single consultation round.
For datacentre developers, effective stakeholder engagement should begin during strategy and site selection. It should also continue through consenting, construction and operation.
Ultimately, communities need to have an authentic role in the conversation. Developers that engage early, explain trade-offs plainly and demonstrate lasting local value will be better placed to build trust and deliver infrastructure that supports New Zealand’s wider interests.
