If you’re building, scaling, or operating any digital services from SaaS to content delivery, fintech platforms to secure network tools, your success depends on how close you are to your users. Not physically, but interms of milliseconds.

That’s why in 2025, connectivity has overtaken capacity as the deciding factor in choosing where to colocate.

At Datacentre220, we’re seeing a clear shift in how modern organisations approach their infrastructure strategy. It’s no longer just about the size of the racks or the availability of power we find it’s about interconnection density, cloud on ramps, and low-latency reach (and cost associated with that connectivity). This more than ever, means putting infrastructure at the edge to complement your strategy.

The edge is where the customer experience happens

Let’s look at the state of the network. According to Data Centre Magazine, global data exchange is growing at 30% per year, with a rapid shift toward decentralised interconnectivity across regions.

In talking with our connectivity partners it’s more than just traffic. It’s application latency, content delivery performance, network handshake time and ultimately the end user experience.

This is why it’s not enough to be in a traditional data centre. It’s best to be in a data centre that’s directly connected to:

• Your cloud region (we now have some fantastic cloud options in country!)
• The right connectivity partner
• Your key customers
• And ideally, all of the above

And that’s where we see many current infrastructure setups fall short. Hosting offshore (e.g. Sydney/Melbourne or Singapore) can add unnecessary hops, increase transit costs, and create potential latency blindspots (even if the infrastructure seems cheap on paper).

‍

Why businesses are rebalancing toward hyperconnected edge colocations

We’re now seeing forward-thinking managed service providers, system integrators, SaaS providers, fintechs, government agencies and AI platforms bringing infrastructure back in country to meet compliance, and to improve performance and resilience.

Why? Because the edge is no longer a fringe concept. It’s reality.

A few key reasons:

• Cloud proximity: Direct on-ramps to hyper scalers are no longer a nice-to-have.They’re critical for hybrid and multi-cloud strategies. Datacentre220 connects directly into cloud regions, ensuring traffic stays within low-latency routes.
• Peering ecosystem: Our facility is home to 90+ carriers, ISPs, and content platforms, making us New Zealand’s most connected data centre.
• Sovereign performance: Keeping data local isn’t just about regulation, it reduces jitter, improves real-time app responsiveness, and avoids intercontinental bottlenecks.

The myth of centralised infrastructure is breaking down.

For years, the assumption was that your workloads had to be near the biggest cities or cloud availability zones to perform. But today’s applications are built differently. They’re becoming containerised (finally!),API-driven, latency-sensitive and they thrive when deployed across distributed edge nodes.

In fact, according to Gartner, by 2026, 60% of enterprise IT infrastructure will be deployed at the edge, not solely in traditional data centres or hyperscale cloud.

We’re already seeing that trend play out in NZ. Security platforms are deploying edge nodes for real-time packet filtering. SaaS providers are serving low-latency services regionally. CDNs are pushing nodes deeper into metro areas. And the fastest route to doing that is through neutral, cloud-adjacent, interconnection-rich data centres like Datacentre220.

‍

Why edge connectivity isn’t just for tech companies

This isn’t only relevant to software firms. It matters for any organisation that:

• Needs to process data in real time(e.g. IoT platforms, health tech, analytics engines)
• Wants to scale internationally without losing control of performance
• Must maintain compliance with NZ data laws
• Is looking to simplify hybrid cloud connectivity with direct cloud peering

Take a New Zealand data analytics firm that supports major FMCG brands with real-time sales tracking, market trend analysis, and consumer insights. While hosting platforms offshore can start out cost-effective, delays in data ingestion and dashboard responsiveness during peak retail periods can frustrate clients relying on up-to-the-minute insights. By blending platforms and locating infrastructure in Auckland within a data centre that peers directly with local ISPs and international transit those concerns disappear.

‍

What edge-ready looks like at Datacentre220

When we say edge-ready, we mean:

• Redundant cross-connects to major fibre carriers
• Direct peering to the big NZ ISPs, content platforms, and in region hyperscale cloud
• Sovereign, ISO 27001 certified colocation with 24/7 access
• Scalable racks ready for CDNs, SaaS,AI, and real-time compute
• And a future roadmap that includes edge PoP enablement for CDNs, 5G, and real-time processing nodes

In practice, this means that startups, SaaS companies, media providers, and enterprise IT teams can colocate at Datacentre220 and get instant access to the full network ecosystem they need to scale without the cost, latency, or compliance drag of an offshore or traditional data centre.

‍

What to ask when choosing an edge location

Not all “edge” facilities are created equal. Here’s a quick test:

• Is the data centre carrier-neutral, or tied to one provider (hint: do they have a network services business generating revenue for them)?
• Does it offer direct cloud interconnects or just public internet?
• Is there a rich peering ecosystem on-site?
• Can you provision cross-connects quickly and easily (within 4 hours with Chorus if you hadn’t seen this)?
• Is the facility certified, secure, and sovereign?
• If the answer to most of those is“no,” it’s not really edge.

‍

Final word: The edge is here

The future of digital performance, user experience, and operational efficiency depends on infrastructure that’s as close to your customers as your code is to the cloud.

That’s what Datacentre220 offers low-latency, high-availability interconnection, right here in the heart of Auckland.

If your cloud workloads, CDN, SaaS platform, or network services need better reach, better performance, and better control we’d love to talk.