New zealand Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in new zealand, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

The New Zealand Government recognizes digital trade as a key driver of economic growth, helping local businesses overcome challenges of scale and distance to access global markets.  This not only accelerates business growth but also generates new revenue, diversifies exports, and improves convenience for consumers.

The government’s vision is to achieve digital inclusion for all through increased internet access, with support from the Ministry of Business, Innovation and Employment, the Department of Internal Affairs, and the Department of the Prime Minister and Cabinet.

New Zealand has high internet penetration, with 95.7% of the population using the internet as of early 2024 (DataReportal).  About 75% of working New Zealanders use the internet daily, and 99% access it weekly, mainly from home.  Fiber internet access is approximately 70%.

New Zealanders value the internet for connecting with friends and family, accessing information, and shopping online. As of 2023, industries with the highest proportions of online retail included travel and accommodation (60%), recreation (48%), furniture and homeware (23%), clothing and footwear (18%), and books and stationery (16%).  The e-commerce market is expected to exceed $5 billion by 2029 (eCommerceDB).

International e-commerce platforms such as Amazon, eBay, Temu, and Alibaba are popular in New Zealand, and New Zealand Post’s YouShop service offers U.S. delivery addresses to facilitate online purchases.  Most brick-and-mortar retailers in New Zealand also maintain an online presence.

Market Challenges

Regulatory Environment

Data Privacy

The New Zealand Privacy Act of 2020 governs the collection, use, storage, and disclosure of personal information by government agencies and private businesses.  It replaced the previous Privacy Act of 1993 and introduced several significant changes to strengthen privacy protections for individuals.  All organizations must comply with the Privacy Act of 2020.

Artificial Intelligence (AI) regulation

New Zealand’s AI regulations are currently under development.  On July 25, 2024, the Minister of Science and Innovation presented a Cabinet paper seeking approval from the Cabinet’s Economic Policy Committee for a strategic approach to AI in New Zealand.  This proposed approach aims to enhance public and economic confidence in AI use. The Minister has pledged a “light-touch, proportionate, and risk-based approach to AI regulation,” which would primarily rely on existing laws as safeguards and introduce new regulations only when necessary to “unlock innovation” or address acute risks.

Cross Border Data Flows

New Zealand’s Privacy Act 2020 includes provisions that regulate cross-border data flows or the transfer of personal data from one country to another.

Cybersecurity 

Cyberspace is essential to New Zealand’s economic growth, productivity, and security. However, New Zealand businesses are behind when it comes to elevating cybersecurity to the highest levels of governance.  More than 40% of businesses have experienced data breaches over the past 12 months, according to the New Zealand Cybersecurity Readiness Survey 2024.     

Online Harm Regulation

New Zealand’s Harmful Digital Communications Act (HSDA) aims to prevent and lessen harmful digital communications.  Contracted under the HSDA, NetSafe is an online safety non-profit organization providing education, anti-bullying, and support.

Standards Development

New Zealand’s Digital Service Design Standard was published in mid-2018.  This standard puts forth guidelines for anyone who designs or provides government services.  It supports New Zealand’s role as one of the Digital Nine (D9) leading digital nations. 

Subnational Market Regulation

New Zealand’s local government consists of 11 regional councils and 67 territorial authorities, which include six unitary authorities, 

Market Entry

Successful market entry into New Zealand requires clear communication to bridge geographic distances and thorough due diligence on any applicable import restrictions.  While New Zealanders are generally open and known for their honesty in business, it is crucial to perform due diligence.  Non-resident U.S. companies selling online to New Zealand consumers must comply with local regulations, including consumer protection and tax procedures.  A U.S. company providing online services to New Zealand residents must register for GST if their total supply of goods and services exceeds NZ$60,000 in a year.  This policy is managed by New Zealand’s Inland Revenue Department.

Public Sector Procurement

The New Zealand Government’s 2030 vision for procurement is to ensure that government spending supports people, communities, and businesses, helping them thrive and grow.  Core objectives of the “Procurement for the Future” program include improving transparency in public spending, modernizing and digitizing procurement processes, and making it easier for New Zealand businesses to engage with the government.
The government also prioritizes streamlining procurement processes for ICT products and services to reduce costs and time. The Ministry of Business, Innovation and Employment (MBIE) leads procurement functions and provides guidance on all-of-government procurement activities.
 

Digital Trade Barriers

Data Localization 

New Zealand’s Data Privacy Act 2020 requires organizations to protect personal information transferred outside the country, mandating reasonable safeguards.  However, not all overseas data transfers are classified as disclosures; for instance, transfers to cloud providers or offshore data processors are exempt.

New Zealand’s data center market is experiencing significant growth. This is driven by regulatory changes and technological developments, including cloud migration and the expansion of the internet economy.  The data center market is projected to expand over 300% from 2020 to 2030, with recent commitments from companies like Microsoft and Amazon Web Services (AWS) adding to the 80+ centers currently in operation, enhancing the sector’s integration, security, and sustainability.  On May 20, 2025, the government announced it removed the Digital Services Tax (DST) Bill proposed by the previous government from the legislative pipeline.  This bill would have levied a 3% tax on revenue earned by large digital service companies from New Zealand customers, but the current government prefers a global solution under the OECD framework.

Technology Barriers

New Zealand has an advanced fiber network that ranks among the top globally for broadband speed, with coverage reaching approximately 87% of the population. As of June 2024, the median fixed broadband speed in New Zealand was 254.33 Mbps downloads and 150.71 Mbps uploads.

Barriers to Internet Services

Some groups of New Zealanders experience less-than-average home access to fiber, especially those living in the North Island outside the two main cities, those with lower household incomes, and/or those with a long-term disability or impairment. These disparities limit access to high-speed internet for many, affecting digital inclusion and accessibility, especially for those who might benefit most from online resources and services. 

Third Country Bias/Influence 

New Zealand has no known third-country influencers affecting digital trade.  For national security reasons, no New Zealand telecommunications operator is using 5G equipment provided by China’s Huawei Technologies.  Huawei Technologies has previously invested in the country’s 3G and 4G networks and continues to maintain a New Zealand presence.  

In 2020, New Zealand developed a new Digital Economy Partnership Agreement with Chile and Singapore, which complements the WTO negotiations on e-commerce and builds on the digital economy work underway within the Asia Pacific Economic Cooperation (APEC), the Organization for Economic Co-operation and Development (OECD), and other international forums.  On May 3, 2024, the Republic of Korea acceded to the agreement.
 

Digital Trade Opportunities

Cross-Sector Enabling Technologies

Communications and Networking Technologies

New Zealand boasts advanced digital infrastructure with robust network coverage and widespread 5G deployment, placing it among the top 20 countries globally for fixed broadband speed and in the top 40 for mobile performance, as reported by the 2023 Inclusive Internet Index and Speedtest Global Index.  The country’s three major network providers – 2degrees, Spark, and One NZ (formerly Vodafone) - deliver mobile coverage across most regions, ensuring strong connectivity nationwide. 

Advanced Computing

Within New Zealand’s small but advanced computing sector, Auckland University has invested in the New Zealand eScience Infrastructure (NeSI), a powerful fit-for-purpose High Performance Computing platform available to postgraduate students.  
In August 2024, New Zealand’s science community was boosted by an announcement of the purchase of a new US$12.12 million (NZ$20 million) supercomputer, the largest research computer in New Zealand. This next-generation system marks the fourth high-performance computer acquired by the National Institute of Water and Atmospheric Research (NIWA) since its initial investment in 1999. 

Artificial Intelligence (AI)

As elsewhere globally, there is considerable enthusiasm and interest in AI in New Zealand but also concern about how AI will shape future jobs and affect privacy.  The Government Chief Digital Officer (GCDO) leads the safe and trustworthy adoption and use of AI in public service.  

A GCDO survey of government agencies found:  

  • Agencies plan to grow their AI use, knowledge, and skills
  • Agencies want AI’s benefits - such as efficiency, analysis, and service delivery
  • Agencies have concerns about AI’s risks - such as ethics, possible biases, security, privacy, skills, and costs
  • The AI Forum New Zealand aims to make the country a globally recognized hub for responsible AI innovation, driving a prosperous and inclusive future.  Goals include advancing from 49th to the top 30 in the Government AI Readiness Index and from 36th to the top 25 in the Global AI Index.  To support this, the government is developing an AI Principles and Roadmap.
     

High Potential Sectors

Six sectors offer high potential for U.S. companies in digital trade opportunties: agriculture, architecture, engineering and construction, creative industries, education, environment, and healthcare.  New Zealand seeks to build capabilities, scale innovation, manage risks, and develop talent across these areas. Agriculture requires investment in digital coverage and rural support; architecture and construction aim to streamline critical infrastructure projects; and the creative sector needs IP regulation updates and AI centers of excellence.  There’s also a shift toward business-consumer (B2C) focused AI solutions. Companies like Microsoft, Google, and IBM are already active in New Zealand’s AI landscape.

Internet Connectivity

New Zealand benefits from robust internet connectivity via three international submarine cables—Southern Cross Cable Network (SCCN), Tasman Global Access (TGA), and Hawaiki—and a domestic Aqualink cable system.  A partnership between Google and Vocus is developing the Honomoana cable, set to connect the United States, Australia, New Zealand, and French Polynesia by 2026. These connections enhance opportunities for U.S. exporters of digital content and support services.

Since early 2022, Space-X has provided satellite-based broadband to rural areas, with plans to offer full mobile coverage through One New Zealand by late 2024 (initially for messaging and expanding to voice and data). In 2023, Lynk and 2degrees trialed satellite connectivity for regions beyond terrestrial mobile coverage. Faster rural broadband access has boosted services like online entertainment, with Netflix, Disney+, and Amazon Prime being popular choices.
New Zealand’s digital technology priorities include game development, data-driven innovation, and AI, particularly for agriculture, education, creative industries, construction, cleantech, and health.    

Financial Technologies

For the first time, fintech has surpassed health tech as New Zealand’s highest-grossing tech subsector.  One in every six dollars captured by New Zealand’s 200 largest tech firms is earned by a fintech company. 
New Zealand’s financial landscape is changing, most notably with a rise in the number of digital banks.  Some local fintech firms are also expanding their product offerings.  Banking regulatory reform is expected following ongoing industry consultation on digital cash in New Zealand. 

Cybersecurity

New Zealand launched a Cyber Security Strategy in 2019, which aims to proactively address cybercrime and work with international partners to boost resiliency and responsiveness. 
While investment in cybersecurity response and advice organizations has grown in recent years, further capability and awareness building across society is necessary.  CERT NZ is currently creating a Cyber Resilience Measurement Framework to regulate the stability of financial systems.  Several U.S. businesses are also active in the cyber security sector in New Zealand.

Internet of Things (IoT) and Smart Cities

While uptake has been slow, New Zealand is well positioned for IoT and the economic opportunities it offers.  IOT areas from which New Zealand stands to gain economic benefit include city infrastructure management, dairy farming, transport and logistics, horticulture, smart metering, asset management, and car parking in cities.  However, New Zealand has further challenges to address, including connectivity, power, and standards; initial and ongoing costs; privacy and security; and environmental sustainability.

Software, Digital Services, and Telecommunications

New Zealand’s Digital Technology Industry Transformation Plan (DTITP) identifies significant growth opportunities in Software-as-a-Service (SaaS) and Interactive Media/Gaming Development.  The Ministry of Business, Innovation, and Employment (MBIE) supports digital skill development through the Digital Boost Alliance, which includes participation from U.S. companies like Amazon Web Services, Hewlett-Packard, Salesforce, Microsoft, Meta, and Google.
New Zealand aims to increase tech sector diversity focusing on women, Māori, Pacific peoples, the neurodiverse, and those with disabilities. It ranks fourth in wireless broadband uptake per capita among OECD countries and is expanding network coverage to remote areas, with ongoing 5G rollouts in urban centers. Telecommunications resilience and sustainability are key priorities, as is digital equity. New legislation is expected to improve telecommunications infrastructure and services across the country.

Quantum Technologies

New Zealand’s quantum technologies sector, though small, is distinguished by world-class expertise, particularly at the Dodd-Walls Centre, which specializes in quantum optics, photonics, and precision atomic physics.  The Centre also focuses on educational outreach and commercialization.

Quantum technologies are one of five priority areas in a collaborative work program recently established by New Zealand’s MBIE and the UK’s Department for Science, Innovation, and Technology.  Through MBIE’s Quantum Technologies Aotearoa (QTA) project, New Zealand connects its niche quantum research expertise with international partners.  The project brings together scientists from the Paihau-Robinson Research Institute, major universities including University of Auckland, Canterbury, Massey, Otago and Victoria, and the Measurement Standards Laboratory (MSL), with a focus on developing rare-earth nitride (REN) technologies and advancing quantum sensing and computing.

In January 2025, the government announced reforms to the science system, including the establishment of a new Public Research Organization (PRO) that will focus on advanced technologies, including quantum computing, AI, and synthetic biology. The government aims to establish the PRO in 2026.

Digital Economy-Related Trade Events

Aotearoa AI Summit
September 18, 2025 
Location: Auckland, New Zealand
Contact: https://aotearoaai.nz

New Zealand Cyber Security Summit 2026
Dates:  TBC.  (In 2025, this event took place March 24-25)
Location: Wellington, New Zealand
Contact: https://nztech.org.nz/event/cyber-security-summit-2025/

FinTechNZ Hui Taumata 2026
Dates:  TBC (In 2025, this event took