Stabilise your IT infrastructure costs

• For standard IT workloads, energy makes up about a quarter of total colocation costs, but with AI, that share can climb to nearly half.

• New Zealand’s data centre industry offers a distinct edge for organisations focused on affordability and sustainability.

• When AI training isn’t latency-sensitive or bound by regulatory limits, New Zealand presents a highly attractive hosting location.

Businesses require reliable IT infrastructure to support expanding digital workloads, but energy prices – a large operational expense for data centres – have become increasingly volatile. Global disruptions, geopolitical tensions and shifting demand patterns are driving costs higher and making them less predictable. In regions like the US and Singapore, restrictions on energy usage in data centres add further challenges. Many organisations are also struggling to find sufficient capacity for their colocation services locally and are looking offshore for innovative, outside-the-box solutions. 

For organisations in Singapore, Australia and the United States experiencing fluctuating and high energy prices, this unpredictability makes it challenging to forecast colocation expenses reliably. Under normal workloads, energy costs represent around 25% of the overall colocation space cost, but with artificial intelligence (AI) workloads, this can increase to up to 50%. As a result, sudden spikes in electricity prices can significantly throw off budgets and undermine carefully crafted business cases, while fluctuating costs further complicate decision-making. 

With rising AI workloads, businesses need scalable data centre capacity. AI applications often demand significantly more – and in some cases up to 100 times more – power than regular workloads, intensifying the impact of energy price volatility on operational costs. This makes accurate forecasting and stable pricing even more critical for organisations planning AI deployments in Australia and New Zealand. 

Understanding and managing these cost fluctuations is essential for maintaining competitive agility. 

New Zealand’s data centre market brings unique advantages that appeal to businesses prioritising cost competitiveness and sustainability. 

• Renewable energy dominance: Approximately 88.1% of New Zealand’s electricity comes from renewable sources such as hydropower and geothermal, ensuring clean, stable and sustainable energy. 
• Competitive global commercial energy prices

For AI training workloads that are not latency-dependent and not subject to regulatory restrictions, New Zealand could be an ideal destination. 

Datacom offers an innovative approach to managing data centre expenses amid this uncertainty: fixed-rate colocation pricing combined with access to low, renewable energy costs. 

• Fixed-rate per kWh pricing: Datacom provides predictable monthly costs that enable accurate financial planning. 
• Low energy costs: Datacom secured an attractive USD$0.073/kWh fixed electricity price a few years ago. Datacom data centres fair-pricing philosophy means that we simply pass through the energy cost with no margin. This allows Datacom to keep energy prices low and stable for clients, insulating them from market shocks. 
• Security and local expertise: Datacom’s operations feature robust security measures and experienced remote management, facilitating seamless maintenance and operations even from offshore locations. 

“Offering fixed rate pricing isn’t just about lowering costs, it’s about delivering confidence. Our clients know their expenses won’t suddenly spike. That gives them the confidence to develop growth-focused business cases in an uncertain energy market,” explains Matt Neil, Datacom’s Director of Data Centres. 

Datacom’s fixed-rate colocation pricing and access to stable, low-cost renewable energy are particularly advantageous for businesses running AI workloads, where energy consumption and compute demands can be variable and intensive. This pricing predictability enables organisations to develop solid, risk-mitigated business cases for AI initiatives, ensuring operational costs remain manageable even as workloads scale. By providing a secure, high-performance environment powered sustainably, Datacom helps clients maximise the value of their AI investments without the uncertainty of fluctuating infrastructure expenses. 

Choosing Datacom’s colocation data centre solution in New Zealand empowers your business to: 

• Mitigate financial risk: Lock in predictable infrastructure costs for multi-year contracts, easing budget management despite market volatility. 
• Support global digital expansion: Benefit from a robust, energy-efficient and cost-effective platform that serves users across Australia and New Zealand with competitive latency. 
• Align with sustainability goals: Enhance your corporate social responsibility credentials with IT operations powered predominantly by renewable energy. 

Simplify vendor management: Access trusted local expertise with remote hands and flexible service models calibrated for offshore teams. 

Ready to stabilise your data centre costs while leveraging low energy prices and sustainable infrastructure? Connect with our Data centre team for a tailored consultation and detailed cost modelling.