Matt Neil has been appointed to lead Datacom’s data centre operations across New Zealand and Australia. We asked him about the impact of AI on the industry, the sustainability imperatives driving change, and the growing demand for secure, sovereign infrastructure.
My previous role was leading Telstra’s data centre operations, which are extensive, amounting to over 40,000 racks across Australia. Before that, I was managing data centres at supermarket operator Coles Group.
Over the years, I’ve overseen complex projects, including transitioning distribution centres from manual labour to highly automated facilities. Businesses today don’t have singular needs. Digital infrastructure for organisations is becoming more complex with decentralisation of infrastructure across traditional on-premises environments, private clouds, public clouds and likely to be multiple clouds and colocation across data centres. No longer does an organisations’ data and infrastructure just reside in one or two operational locations.
My goal is to help Datacom integrate its broad set of services into a cohesive digital infrastructure offering suitable for this complex landscape. With Datacom specialisation as a full-service IT systems integrator and operator our strength and ability enables us to work with organisations across their digital infrastructure portfolio.
Datacom’s biggest strength is the breadth and integration of our services. Unlike a pure-play data centre provider, we offer everything from hardware and software procurement to managed services and cloud solutions.
Having specialisation across the digital infrastructure landscape means we can advise clients on the best mix of digital infrastructure from on-premises, private cloud, public cloud, data centre or hybrid solution, tailoring infrastructure to their journey and requirements. What I mean by this is that we can assist clients to put the right infrastructure and workloads in the right location and the right cost. Not just try and sell you a data centre because that’s all we offer. Being able to draw on 60 years’ experience and a deep presence in both New Zealand and Australia means we are uniquely positioned to act as a trusted advisor, not just a vendor, for organisations pursuing digital transformation, transition and modernisation.
The requirements for AI workloads are driving a seismic shift in data centre design.
Where the traditional rack might draw 8–10 kilowatts, AI racks are consuming up to 100–150 kilowatts or more. This massive increase in power density means dramatic changes in the way that we design, build and operate data centres and the electrical and cooling infrastructure within.
Notably, the industry is reversing a long trend of removing water from the data centre floor and instead is now adopting advanced water-based cooling systems across the data centre from facilities management and support all the way to water at the rack. In regard to supporting cooling for AI environments everyone’s engineering requirements are different, with varying temperature and water handling methods. Each hyperscaler, be it Oracle, Microsoft or AWS are each doing it their own way and others are doing it a completely different way again. This lack of standardisation means we need flexible, customer-driven designs. At Datacom, we are investing in purpose-built environments to support dense AI workloads and upgrading our data centres to suit.
Sustainability remains at the heart of our strategy, with a goal to be net zero by 2030. Every decision around expansion or technology adoption is weighed against this commitment. That said, AI and other emerging technologies are driving up energy demands, so the challenge becomes one of increasing efficiency, not simply limiting energy use.
Datacom as a data centre operator, like all data centre operators, is facing the fundamental paradox of reducing environmental impact and driving towards sustainability to reach net zero targets while AI workloads are demanding exponentially more power - a demand that shows no signs of slowing. New Zealand presents a compelling solution to this paradox, with over 85% of electricity generated from renewable sources - primarily hydropower and geothermal - providing an ideal foundation for sustainable AI workloads. The country's mild climate with winter temperatures typically ranging from 7-16°C enables extensive use of free cooling systems that significantly reduce energy consumption. Along with the advantages, Datacom is deploying advanced cooling technologies such as immersion cooling and direct-to-chip systems to dramatically improve thermal efficiency.
I believe that regions like New Zealand, with abundant renewable energy and natural cooling advantages, will become increasingly attractive for organisations seeking to balance sustainability with cost reduction. The rapid expansion of AI infrastructure is outpacing clean energy deployment globally, forcing utilities to keep fossil fuel plants online and creating urgent pressure for geographic optimisation in data centre placement. This trend is forcing accelerated investment in grid infrastructure to prevent sustainability goals from being overwhelmed by exponential growth in computational demands.
If power requirements continue to escalate at current rates, New Zealand and Australia as nations will need to consider emerging technologies such as small modular reactors to meet the unprecedented energy demands of AI infrastructure whilst maintaining their sustainability commitments.
Being more than just a data centre provider and operator, Datacom looks at sustainability on all levels; not just power and cooling, but also comprehensive hardware lifecycle management, waste reduction strategies, water conservation measures, renewable energy integration, and responsible construction practices that minimise embedded carbon and sustainable material selection. Our holistic approach encompasses everything from optimising server utilisation and implementing energy-efficient networking equipment to reducing the carbon footprint of building materials and establishing circular economy principles for equipment refresh cycles. By addressing both operational and embodied emissions across our entire facility footprint – including end-of-life recycling programs and sustainable construction materials – we create data centres that deliver performance and efficiency whilst being sustainable and minimising environmental impact at all stages from development and construction through to operations.
Traditional data centres relied purely on-air cooling, using chilled air to maintain temperatures. With the increase in rack power densities now going over 30 kilowatts per rack; the limit at which you can naturally cool, air alone is no longer sufficient. Datacom adopts numerous technologies to support the increase in power densities such as elevated water temperatures, rear-door heat exchangers and liquid based cooling such as direct-to-chip and immersion cooling for high density applications.
From a facility perspective we employ the latest technologies for power and cooling, such as adiabatic coolers which use less water than evaporative systems, dry coolers and free air cooling, to control and cool incoming air. We also prioritise efficiency in equipment design and seek continuous improvement in all our operations to support both growth and our ESG goals. One of the other things we’ve done is increase the water temperatures of our cooling systems to 18-21oC degrees, whilst still operating within ASHRAE standards. This drastically reduces operational costs over traditional operated water temperatures of 7-10oC, with operational savings of over 40% being achieved.
On a larger scale, our facilities leverage hybrid systems and, in New Zealand, we exploit the mild climate for “free cooling,” drawing in outside air or using heat exchangers to significantly reduce the electrical load. This combination not only lowers our carbon footprint, but also delivers substantial operational cost savings, which is attractive to sustainability-focused clients.
A major advantage for Datacom in New Zealand is the high proportion of grid electricity from renewables, over 85%. To provide additional certainty for our customers, we have secured power agreements at competitive fixed rates extending well into the next decade.
This not only locks in price stability, but also increases our appeal to organisations seeking to ensure their operations are backed by a sustainable energy supply.
We also engage directly with utilities and council bodies to anticipate and plan for future expansion, ensuring that access to both power and water is guaranteed before we scale facilities. For the largest campuses, coordination with authorities is crucial. Requirements for a single site can reach tens of megawatts of power and millions of litres of water per day.
We engage early and constantly with water authorities and local councils to ensure both supply and discharge capacity. As our cooling requirements grow, so does water consumption, potentially up to two million litres daily for large-scale sites.
Our focus is on both efficiency and community responsibility, ensuring our operations do not compete with local water supplies. We also explore options for grey water reuse.
Datacom’s strong local presence is a key differentiator. We operate sovereign infrastructure within New Zealand and Australia, so clients who need their data to remain within national borders can be assured of compliance and security. This is particularly relevant for government, defence, and large enterprises increasingly wary of extraterritorial access under regulations like the US CLOUD Act.
We’re seeing renewed interest in data sovereignty as geopolitical tensions rise. Datacom’s record of supporting government clients and enterprise with secure, in-country hosting is more relevant than ever, and we continue to invest in this capability as a strategic priority.
Datacom currently operates six facilities, four wholly owned in New Zealand (Christchurch, Wellington, Hamilton, and Auckland), with the largest capacity in Auckland and Hamilton.
In Australia, we partner with AirTrunk for colocation in enterprise-grade data centre campuses. Collectively, we offer around 40 megawatts of deployed IT capacity, with active expansion plans to accommodate higher-density workloads and future growth.
I’m inspired by Datacom’s unique blend of history, expertise and ambition. Not only do we have six decades of experience supporting critical industries, but we also have a culture that blends technical excellence with a humble, client-focused approach.
As digital infrastructure demands accelerate, Datacom’s multi-disciplinary capabilities, across data centres, cloud, managed services, and software, puts us in a position to truly partner with clients, not just service them.
For organisations evaluating their next move, my message is this: choose a provider that can adapt as you evolve. Datacom is more than a data centre operator. We’re an enabler of your digital infrastructure journey, committed to sustainability, sovereignty, and genuine partnership every step of the way.
Datacom is your trusted colocation data centre partner, delivering secure, resilient, and flexible data centres solutions across New Zealand and Australia.
Our scalable colocation data centre services can be configured to your needs with quarter-, half-, and multi-rack options. We can even deliver you a customised data floor or entirely new data centre, including modular data centre designs for rapid deployment. All our facilities are ISO27001-certified data centres, meeting stringent international security standards.
