Google upgrade a ‘shot in the arm’ for economy

Communications Minister David Clark says Google’s decision to upgrade its New Zealand service is ‘‘another major vote of confidence’’ for the country’s digital industries.

Google has announced it will no longer treat New Zealand customers as if they were in Australia and will create a new cloud computing region for the country, but is being coy about the specifics.

Clark said becoming a cloud region would mean businesses would have a choice to keep their data onshore and work with Google Cloud’s domestic team to ‘‘really drive digital transformation here’’.

‘‘Protecting people’s data and privacy is critically important to the Government. Onshore cloud facilities give us stronger control of New Zealand’s data because it is held here, where our laws and protections apply,’’ he said.

Google has established cloud computing regions with their own data centres that customers can use to access its services in its 34 major markets around the world.

The usual advantages of having those facilities close by in a country are that it reduces lag, allowing cloud-based services to run faster, and can avoid the legal and regulatory complications some customers face when sending data overseas.

The company said it had now decided to create new Google Cloud regions in New Zealand, Mexico, Malaysia and Thailand.

However, it would not confirm that it would see it follow in the footsteps of rivals Amazon Web Services and Microsoft by building its own data centres in New Zealand.

The new cloud region would nevertheless reduce lag and allow Google customers to host their data inside the country, it indicated – which may suggest it has instead decided to partner with a local company to provide the extra services.

‘‘Whilst this will not be a physical data centre, cloud regions are located within data centres that may be owned by Google, or by a third party co-location provider,’’ a spokesperson said.

‘‘It will include the same hardware, software and operations found across our Google Cloud data centres.’’

Google would not discuss the size or the dollar-value of its planned investment.