After posting a record profit of $1.321 billion dollars back in August, ASB has decided to sign on with Microsoft as an anchor tenant for their yet-to-be-completed Auckland datacenter. This follows ACC signing up last month as part of an all-of-government agreement between Microsoft and the Department of Internal Affairs.

One phrase that keeps popping up in news reports about these deals is “data sovreignty”, and the supposed benefits of hosting data on New Zealand shores. However, it is probably more accurate to think of the new Azure-based datacenter as more like a Microsoft “embassy” for data. It may be physically located in New Zealand, but your data remains well and truly under Microsoft’s control.

The next question to be asking is whether you should trust them with it or not.


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