As artificial intelligence rapidly becomes part of everyday life and more of New Zealand’s critical data is stored on overseas-owned cloud platforms, University of Auckland Professor Gehan Gunasekara is warning the country faces growing economic, strategic and national security risks unless it strengthens its digital resilience and regulatory framework.
The warning comes amid increasing use of artificial intelligence across government, business, education and healthcare, alongside growing investment in large-scale data infrastructure that powers AI technologies.
Professor Gunasekara says New Zealand has become heavily dependent on multinational technology companies for cloud computing, data storage and artificial intelligence services, raising important questions about who controls the country’s digital infrastructure and where sensitive information ultimately resides.
The issue has gained increasing attention as AI tools become embedded in schools, workplaces and public services. Recent reviews have found AI use is now widespread throughout New Zealand’s education sector, with teachers and students increasingly relying on generative AI for learning, assessment and administration. Education experts say clearer national guidance is needed to ensure AI is used safely, ethically and consistently across classrooms.
At the same time, the Government is looking to position New Zealand as an attractive destination for AI-related investment, promoting the country’s renewable energy resources and stable political environment to attract international technology companies seeking locations for major data centres.
However, the rapid growth of AI infrastructure has also prompted calls for greater scrutiny. The Green Party has proposed a one-year pause on consenting new AI data centres while the Government develops a comprehensive national strategy to address their environmental impacts, energy demands, water use and implications for digital sovereignty.
Professor Gunasekara argues the conversation extends well beyond infrastructure. He says New Zealand must consider how much control it retains over critical information as increasing volumes of government records, business data and personal information are managed through overseas-owned cloud services operating under foreign legal jurisdictions.
Digital sovereignty has emerged as a growing policy issue internationally, with many countries examining how to balance the benefits of global technology platforms against the risks of relying on infrastructure beyond their direct control.
For Māori, the discussion also intersects with questions of data sovereignty. Māori organisations have long argued that information relating to Māori communities, whakapapa, health, language and cultural knowledge should be governed in ways that recognise tino rangatiratanga and Indigenous rights over data.
As AI systems increasingly rely on vast datasets to train algorithms and inform decision-making, researchers say ensuring Māori data is collected, stored and used in culturally appropriate ways will become increasingly important.
Cybersecurity experts also warn that dependence on offshore digital infrastructure creates additional resilience challenges. Major international outages, geopolitical tensions or changes in foreign regulation could have significant consequences for essential services operating in New Zealand.
Professor Gunasekara says New Zealand needs a coordinated national strategy that addresses artificial intelligence, cybersecurity, privacy, competition law and digital infrastructure as interconnected issues rather than separate policy debates.
Such a strategy, he argues, should encourage innovation while ensuring public trust, protecting sensitive information and maintaining national resilience in an increasingly digital economy.
As artificial intelligence continues to reshape every sector of society, experts say decisions made over the coming years will determine not only how New Zealand uses AI, but who ultimately controls the data, infrastructure and technologies that underpin the country’s digital future.
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