An architect's digital vision of the future IBM data center in Auckland area

IBM has commenced construction of a new 16,000-square-foot data center in Auckland, New Zealand. The company will use the facility to support its outsourcing customers' applications and operations, including cloud-enabled services.

This is the first phase of the facility, in which IBM plans to invest a total of $80 million in New Zealand dollars (about US $57.9 million). IBM expects its new data center within the 56,000-square-foot building to be fully operational by late 2010.

"This is a highly significant investment in New Zealand's future technological infrastructure," Jennifer Moxon, IBM's managing director for New Zealand, said in a statement. "It is the result of long term strategic planning and signals IBM's commitment to enable New Zealand to become a world class technology center and advances the growth of the digital economy."

The new facility's design incorporates a number of energy-efficiency elements, including free cooling.

IBM is working with New Zealand construction company Highbrook Development, whose Highbrook Business Park in East Tamaki (a suburb of Auckland) will be home to the new data center.

IBM's reputation in the country suffered in October, when a power failure in one of its data centers caused a significant system failure for its client Air New Zealand, resulting in more than 10,000 stranded or delayed passengers.