Beyond the grid: How AI is reshaping NZ’s infrastructure
Beyond the grid: How AI is reshaping NZ’s infrastructure
AI is no longer a tech-sector story, but a project and infrastructure one.
As New Zealand doubles down on energy transition and network modernisation, the same organisations managing critical utilities are also navigating AI transformations. The result is a compounding effect with energy and water demand surging, digital transformation accelerating, and the skills needed to deliver both converging faster than the market can keep up.
Energy is now the bottleneck in the AI race
Globally, AI innovation is driving unprecedented demand for electricity. Anthropic’s Build AI in America report warns that the US AI sector will require at least 50 GW of electric capacity within three years, which is more than New Zealand’s entire generation output several times over. Data centre buildouts are now competing directly with renewable generation projects for power, land, and transmission access.
By contrast, China added over 400 GW of new power to its grid in 2024, creating a massive infrastructure advantage and is a reminder that the AI race isn’t just about algorithms, but about who controls the energy supply that powers them.
The irony? While global power demand soars, AI itself is getting more efficient. Google reports that energy consumption per prompt has decreased 33 times in the past year, and water consumption per interaction has fallen to a fraction of earlier predictions. While AI is learning to use less, the systems supporting it still need more.
For New Zealand, this tension creates a unique challenge: modernising networks fast enough to keep pace with global digital demand while pursuing sustainability goals at home.
AI adoption is accelerating unevenly
According to newzealand.ai, 82–87% of New Zealand businesses now use AI tools for productivity, and 69% of consumers do the same. Adoption is led by transport, media, tech, and public services, but energy, utilities, and telco aren’t far behind.
Our own research shows that 83.3% of leaders in the energy and resources sector and 69.3% in telco believe AI will positively impact their roles within two years. However, half of these organisations are still in the experimental or pilot stage. The shift from exploration to enterprise-level integration is only just beginning.
Encouragingly, around 64% of energy and resources organisations and 75% of telcos already consider AI a strategic priority. For most, transformation is starting in areas where automation can drive immediate efficiency and cost benefits (such as customer service and operations) before expanding into asset management, project delivery, and predictive maintenance.
It’s clear that the conversation has moved beyond “if” to “how fast”.
Where opportunity meets capability
As AI becomes embedded in the backbone of how we build, maintain, and manage infrastructure, the demand for digital talent across engineering and energy is exploding. Data scientists, automation engineers, and AI project leads are now as critical to delivery as civil or electrical engineers.
And these skills don’t stay in one lane. The same professionals helping utilities modernise their networks are being hired by telcos, energy companies, and even transport authorities. And the overlap continues to grow.
For hiring leaders, this means rethinking workforce strategy. It’s not enough to source talent from your own sector anymore. The organisations staying ahead are those building cross-industry capability, creating hybrid roles, and embedding AI literacy across all levels of the workforce.
The next delivery advantage: human + machine
AI won’t replace the workforce that builds New Zealand’s future, but it will augment it.
And it’s about amplifying a person’s impact, freeing specialists to focus on critical decision-making while machines handle data-heavy analysis and monitoring.
The next delivery advantage will belong to organisations that combine technical capability with digital intelligence, and those who see AI not as a standalone initiative but as an enabler of better, faster, and more sustainable outcomes.
Get the insights on what’s shaping New Zealand and download our latest Infrastructure & Utilities Snapshot.