Amazon has abandoned a planned data centre development in West Auckland, resulting in a $44.9 million impairment related to the shelved project. This decision marks a significant shift in the company’s strategy towards leasing capacity instead of building new facilities.
The impairment, recorded within operating expenses, contributes to a pre-tax loss of $36 million for Amazon in 2025. Despite this setback, the company maintains total assets in New Zealand exceeding $650 million.
In terms of equipment value, Amazon saw a remarkable surge from about $5 million to over $250 million between December 2024 and December 2025. Additionally, lease assets climbed to approximately $285 million from roughly $244 million during the same period.
Officials have noted that Amazon’s only publicly disclosed greenfield development had been this proposed hyperscale data centre in Westgate. The scale of the write-down indicates that the impaired site relates directly to that project.
Instead of constructing new sites, it appears Amazon is adopting a ‘lease-and-equip’ model in New Zealand—buying capacity and filling it rather than building from scratch. This strategic pivot could reshape how tech giants approach infrastructure investments in the region.
In 2021, when Amazon first announced plans for the data centre, it projected that the investment would create around 1,000 direct and indirect jobs. The company also claimed it would add about $10.8 billion to the local economy over fifteen years.
The New Zealand government had welcomed this investment as a boost for local employment and economic growth. However, with this recent abandonment, community leaders are expressing concern about potential job losses and missed opportunities for local businesses.
David Clark, Minister for Digital Economy and Communications, mentioned that while it’s disappointing news, he remains optimistic about other potential investments that could still benefit New Zealand’s tech landscape.
