Microsoft has announced it plans to build a new data center region on the North Island of New Zealand, the company’s first cloud region in the country.

Establishing the Zealand’s region will enable Microsoft to deliver enterprise-grade cloud services in the country. The company said it also aims to fuel new growth that will accelerate digital transformation opportunities across New Zealand and continue its investments in new solutions that support both the country’s and Microsoft’s sustainability goals.

“This significant investment in New Zealand’s digital infrastructure is a testament to the remarkable spirit of New Zealand’s innovation and reflects how we’re pushing the boundaries of what is possible as a nation,” said Vanessa Sorenson, general manager, Microsoft New Zealand. 

The new cloud region is also coming after the government proposes the Privacy Act, which requires data protections for New Zealand’s citizens and pushes for data residency restrictions. Having a diverse partner ecosystem of about 2,300 companies in New Zealand, Microsoft adds that this facility will help public– and private–sector entities, large enterprises, and small and medium-size businesses or companies to meet their data residency, security and compliance needs.

In a daily COVID-19 briefing, the prime minister of New Zealand, Jacinda Ardern, acknowledged Microsoft’s plans stating that, the announcement “signals to the world that New Zealand is open for business and quality investment. Microsoft wouldn’t be investing here if they didn’t have full confidence in the New Zealand economy, and saw us as a safe place for operation in both the health and business sense.”

Microsoft president Brad Smith, added through his Twitter post: “Last year, I spent some time in New Zealand and met with Prime Minister Jacinda Ardern.  I was so impressed by that country’s digital ambitions. Our new data center there will only accelerate its digital transformation and help propel all New Zealanders forward.”

In another announcement, Microsoft disclosed it plans to invest $1 billion in Poland to accelerate innovation and digital transformation in the “Polish Digital Valley”, starting with the development of a cloud region in the country.