Digital Infrastructure

Digital infrastructure is a critical enabler of New Zealand's increasingly connected economy. Driven by growing demand for connectivity, cloud-based services, AI and emerging technologies, investment in this sector continues to accelerate both locally and globally. The rapid expansion of AI, in particular, is fuelling unprecedented demand for data centre capacity and high-performance digital networks. 

Russell McVeagh is a leading adviser in the digital infrastructure sector in New Zealand, having acted on many of the country's most significant transactions and projects. We advise on all aspects of digital infrastructure assets, from investment, M&A and financing through to procurement, development, commercial contracting and regulatory approvals. Our experience includes advising on landmark deals involving mobile tower infrastructure, data centres, fibre networks and telecommunications platforms, and on the power purchase agreements (PPAs), customer contracts and other key arrangements that underpin new digital infrastructure facilities. 

We bring together specialists from across our legal practice areas to deliver integrated, commercially focused advice that meets the unique demands of this rapidly evolving sector.

Experience

Digital Infrastructure M&A

Clients seek out our M&A team for their market knowledge, innovative and client-focused approach, and their ability to execute on the most critical and complex technology and digital projects.

Some of our recent experience in digital-focused infrastructure M&A includes advising:

• Pacific Equity Partners, a leading Australian private equity investor, on the acquisition of Spark New Zealand’s data centre business.

• La Caisse on its acquisition of a 50% shareholding in mobile infrastructure provider Connexa. The transaction was the first major secondary sale of an interest in a telecommunications digital infrastructure platform in New Zealand.

• QIC Private Capital on its acquisition of 50% of Vector Limited's New Zealand and Australian smart metering business.

• The financiers to:

  • InfraRed Capital Partners and Northleaf Capital Partners in relation to a NZ$1.7 billion acquisition of an 80% stake in Vodafone New Zealand’s passive mobile tower infrastructure assets.

  • Ontario Teachers' Pension Plan Board (OTPP) in relation to the acquisition of a 70% stake in Spark New Zealand’s passive mobile tower assets.

• A bidder for the Spark New Zealand mobile towers assets.

• WEL Networks on the sale of its 85% stake in Ultrafast Fibre Holdings to First State Investments.

• Spark New Zealand on the joint venture establishment of Connect 8 with Vocus and subsequent acquisition of the entire shareholding in Connect 8, an infrastructure services entity providing fibre construction and delivery capability across New Zealand.

• intelliHUB on its acquisition of the Metrix smart-metering business from Mercury Energy (and the subsequent sale of a 50% stake in intelliHUB to Brookfields).

Data Centres

Our most recent experience in data centres includes advising:

• Data centre developers in relation to the development of large-scale data centres in New Zealand.

• One of New Zealand's largest companies on the outsourcing of its global IT infrastructure requirements to HCL, including all data centre service requirements, across 38 jurisdictions globally.

• Spark New Zealand Trading Limited in connection with its acquisition of an approx. 4 hectare site in Dairy Flat, Auckland for the purposes of developing a hyperscale data centre campus, including assisting with Overseas Investment Act 2005 consent.

• Pacific Equity Partners, a leading Australian private equity investor, on the acquisition of Spark New Zealand's data centre business.

• AWS on the New Zealand regulatory requirements applicable to the set-up of their proposed New Zealand data centres prior to establishment.

• Various NZ Government departments and entities on digitisation projects that involve negotiation of data centre arrangements.

Consenting

Our experience includes advising on consenting, planning and regulatory pathways for data centre and digital infrastructure projects, including managing planning and environmental risks and navigating engagement with regulators, communities and other stakeholders. This includes:

• Spark New Zealand Trading Limited on the consenting aspects of its proposed hyperscale data centre campus on an approx. 4 hectare site in Dairy Flat, Auckland.

• AWS on the consenting and regulatory aspects of the set-up of its proposed New Zealand data centres prior to establishment.

• A greenfield data centre developer on the consenting aspects of the development of a large-scale data centre in New Zealand.

PPAs

We also have in-depth experience negotiating PPAs and understand what is required to achieve a “bankable” PPA. We know how to structure options for PPAs and electricity swaps for new proposed loads and recently advised on an electricity swaption for a proposed new data centre.

Procurement

We advise on complex digital infrastructure procurement projects, helping clients navigate large-scale outsourcing, vendor selection and contract negotiation to secure the technology platforms and services that underpin their operations.

Our experience includes advising:

• A large retail bank on the procurement of hyperscale data centre services on a colocation basis from CDC across multiple CDC sites to house mainframe and server hardware supporting the processing of c. 20% of New Zealand's banking sector data.

• One of New Zealand's largest airports in relation to the renegotiation of its outsourcing arrangements for core IT requirements, including data centre services arrangements.

• One of New Zealand's largest banks on the outsourcing of business-critical mainframe and other IT infrastructure-related services to Infosys and DXC.

• Several large New Zealand and overseas organisations on the procurement of data centre services (including, internationally, Barclays Bank and HSBC in the financial services sector).

• WPP on its global IT infrastructure outsourcing requirements, including a significant data centre service component, across more than 100 countries.

• Air New Zealand on the procurement of its global IT infrastructure requirements, including data centre services.

• Ministry of Justice on the procurement of and contracting for a new digital integrated case management solution to support modern and effective case management, judicial decision making, court and tribunal management, and enabling online engagement from participants.

• Natural Hazards Commission Toka Tū Ake on the establishment of a customer-oriented “one touch” claims management structure from a public-private partnership between the Government and private insurers, as well as the development of a data hub to seamlessly engage with “ecosystem” partners, such as its insurance partners, by using technology platforms, a crucial API exchange and collaboration tool.

Awards

Our market-leading expertise is consistently recognised by the world’s leading legal directories, including Chambers and Partners and The Legal 500. Recent awards include:

• Project Finance Deal of the Year at the 2024 NZ Law Awards for the financing of Connexa's acquisition of 2degrees' mobile cell tower assets.  

• Banking & Finance Deal of the Year finalist at the Legal Excellence Awards 2026 for Pacific Equity Partners' acquisition of Spark New Zealand's data centre business.