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Datacom prepares AI-era data centres with sovereignty, sustainability and scale

Datacom prepares AI-era data centres with sovereignty, sustainability and scale

Podcast: Datacom’s Matt Neil discusses resilience, compliance and efficiency in APAC data centres.

By Raymond Tan , Kumar Gandharv on Oct 8, 2025 12:42PM

Datacom is expanding its data centre footprint across Australia and New Zealand to meet growing demand for cloud services, AI, and digital transformation. The company is focusing on efficiency, resilience, and sustainability as hyperscale deployments expand in the Asia-Pacific region.

Speaking on iTnews Asia’s Thought Leaders Podcast this month, Datacom’s Director of Data Centres, Matt Neil, said the company’s approach is about building a future-ready infrastructure.

“Datacom is one of the largest locally owned technology companies in Australasia, with nearly 60 years of experience. From a data centre perspective, we've got six data centres, four in New Zealand, two in Australia, with approximately 40 megawatts of IT capacity across those sites,” Neil said.

He added that Datacom provides a wide range of IT services, including security, networking, software and application development, hardware and software sales, IT outsourcing, and IT service management.

AI reshaping data centres

Neil said artificial intelligence is accelerating changes in the way data centres are designed and operated.

“Ten, fifteen years ago, we had cloud, and that was a big disruptor. But AI is like cloud on steroids,” he said.

“We spent the last 30 years trying to keep water out of the data centre, and now we’re bringing it back in for liquid-cooled racks and immersion cooling. It’s rapidly changing.”

Reliable power and efficiency

As power demand grows — with estimates from Goldman Sachs predicting a 50 percent increase for data centres over the next two years — Datacom has secured long-term power pricing to provide certainty for customers.

“We’ve managed to lock in power for the next decade at around eight US cents a kilowatt, which is very competitive,” Neil said.

He added that Datacom’s power usage effectiveness (PUE) averages between 1.1 and 1.2, compared with PUEs of around 2 for on-premises environments.

“Our focus is on using less energy, and we pass those savings directly through to our customers,” Neil said.

The company also provides 100 percent SLA availability, with all infrastructure built to at least N+1 design, and some components N+2.

Sovereignty and compliance

Neil said data sovereignty has become a critical concern for governments and enterprises.

“With growing cross-border tension and digital risk, customers are looking for certainty and locality,” he said.

“No longer is it acceptable to just know your data is ‘in the cloud’ without knowing where it is. Our customers expect their data to stay in-country, and that’s what we deliver.”

Datacom is certified to ISO 27001 and PCI DSS standards, and access to its facilities is strictly controlled.

“Unless you’ve been pre-approved, you won’t get into the site, even if it’s your system,” Neil said.

Onsite support and hybrid cloud

Hybrid and multi-cloud environments are becoming more complex, and onsite support is key to keeping them running smoothly.

“We have teams onsite 24/7 across all our locations. They work on a shift rotation and are key to supporting our customers,” Neil said.

He added that Datacom often acts as an extension of customers’ IT teams. “For example, with Fulton Hogan (a large infrastructure construction company serving the Australasia market), we provide not just data centre services but also IT services,” he said.

Balancing sustainability and AI growth

Neil acknowledged the tension between AI’s rising power demands and organisations’ net zero commitments.

“Really, to reduce cost, it comes down to using less energy in the facilities, which is a paradox as AI is asking for more power,” he said.

To address this, Datacom invests in more sustainable alternatives as infrastructure reaches the end of life, from LED lighting to free-air economisers.

New Zealand’s renewable energy and cool climate make it an attractive location for organisations seeking sustainable data centre capacity in the region, Neil said.

“If sustainability is your goal, and you want to reduce costs while coming into the region, then look at locations such as New Zealand,” he said.

Preparing for the edge

“With AI driving cars, hospitals and everything else, we’re going to see a requirement for true real-time,” he said.

“That means pushing processing to the edge of the network, not just relying on core data centres. Connectivity, renewables, and stability of government are all going to make this region very attractive.”

Neil said Datacom remains focused on helping customers balance sovereignty, sustainability, and scale as they navigate the AI era.


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