Monday, May 4, 2026

Amazon shelves Auckland data centre project after $45m write-down

Amazon Auckland data centre

Amazon’s New Zealand data centre subsidiary has reported a nearly $45 million financial hit after abandoning plans for a major West Auckland development, according to newly released accounts.

The company recorded a $44.9 million impairment tied to land earmarked for a proposed hyperscale facility, widely understood to be the previously announced Westgate project. The write-down pushed Amazon Data Services New Zealand Ltd to a pre-tax loss of $36 million for 2025, despite the company continuing to expand its local infrastructure footprint.

According to state media, financial records show a sharp rise in spending on servers, networking equipment and leased data centre capacity, while construction-related assets fell to zero, indicating a strategic shift away from building standalone facilities toward leasing and fitting out existing sites.

The original 2021 proposal had been promoted as a multibillion-dollar investment expected to create around 1000 jobs and significantly boost New Zealand’s digital economy.

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