By Alexandra Cain
Emerging tech tools are proving increasingly valuable for assessing Aotearoa New Zealand’s infrastructure assets’ exposure to climate risks.
Although it will take time to train them up, artificial intelligence (AI) models have the potential to predict threats like floods, rising sea levels and landslides. This will support more informed decisions about where to place infrastructure assets, and will even guide maintenance strategies. At the same time, AI-powered technology is being applied to assets such as Auckland’s CCTV network to make better use of existing infrastructure.
This technological evolution coincides with the rapid expansion of distributed smart devices. AI-powered drones and sensors now offer better ways to monitor critical infrastructure. These tools can track the condition of mobile towers, bridges, roads and energy assets, even in remote locations far from urban centres. This will help to reduce reliance on manual inspections and minimise operational downtime.
As AI-driven tech matures, it will reshape how infrastructure stakeholders approach risk and resource allocation. There is particular emphasis on the role of digital twin models to improve how energy assets are managed.
Digital twins are real-time, AI-enhanced replicas of physical assets or systems. They are able to simulate diverse infrastructure networks – from water distribution systems and mobile tower grids, to road networks or even entire cities. These models integrate geospatial data, climate projections and real-time inputs, supporting scenario modelling and rapid disaster response protocols.
‘Although a range of digital twin products already exists, there is significant potential for AI to increase the sophistication, granularity and accuracy of digital twin models when applied to complex, highly networked critical infrastructure assets,’ says Nicole Patterson, Executive Director of Morrison, a global infrastructure manager.
Meanwhile, AI’s exponential growth is reshaping the need for energy. As AI drives demand for new data centres, pressure intensifies on power grids, a challenge Aotearoa New Zealand’s infrastructure sector must proactively address.
‘New Zealand has an advantage over many countries due to its extensive hydropower base. This positions renewables to efficiently support new energy loads, enhanced by additional power storage and the flexibility offered by AI‑driven energy demand management,’ says Morrison’s second Executive Director, Will McIndoe.
New Zealand’s hydro resources are an attraction for big tech companies and large industrial businesses that want more sustainable energy solutions. Integrating these advantages with AI’s escalating demands requires considerable forethought.
‘The balance between making the most of renewable assets, accommodating AI-induced energy needs and maintaining system resilience demonstrates the challenges facing infrastructure strategists,’ says McIndoe.
Modernising infrastructure in New Zealand requires a sustainable, balanced approach to digital investment.
‘The shift to monthly, recurring cloud services over recent years has created a new cost challenge. What began as a flexible consumption model has, in some cases, grown into an unsustainable cost burden. Many organisations now spend their annual IT budgets in the first quarter, potentially creating financial strain, which, in turn, prompts a review of their tech infrastructure strategy,’ says Jamie Hall, Senior General Manager, Partner Sales, at tech firm Ingram Micro.
Digital technology can help infrastructure businesses to optimise what they already have by using tools and platforms to monitor consumption, remove waste and automate cost controls.
‘It could also open the door to smarter hybrid environments, where infrastructure is placed in the most efficient and fit-for-purpose locations, whether that’s public cloud, on-premises tech or at the edge. We’re seeing a shift away from cloud-first at all costs and a move towards flexible, workload-specific models. This is where digital tech becomes critical,’ says Hall.
A powerful example of digital modernisation in action is Auckland Transport’s transformation of its CCTV network. With thousands of cameras used for monitoring congestion and public safety, the organisation needed a modern platform to integrate AI capabilities and process video footage faster. The solution allows data to be processed closer to the source to enable faster incident response and smarter decision-making.
The project led to a 60 per cent increase in camera coverage, while reducing the data centre footprint by five per cent. By shifting to a cloud-like model with local processing power, Auckland Transport improved service delivery without adding physical infrastructure. AI was used to flag potential issues automatically, reducing manual oversight and enabling more proactive management.
‘It’s a strong example of what’s possible when legacy systems are replaced with scalable, integrated solutions,’ says Hall.
Making better use of what already exists with digital tools that enable smarter decisions and drive efficiency is an approach many different infrastructure businesses can follow.
‘As cities grow and infrastructure ages, there is increasing pressure for businesses to deliver services that are smarter, safer and more sustainable. Technologies like AI and hybrid cloud systems may allow organisations to process data closer to where it’s generated, and respond more quickly to real‑world events. One clear benefit is the ability to modernise essential public services, such as transport, health and utilities, with real-time insights and improved responsiveness,’ says Hall.
New infrastructure projects will need to balance cost, performance and location.
‘What’s needed now is optimisation; not just shifting workloads, but using software and platforms to monitor actual usage, reduce waste, and ensure infrastructure is right‑sized for today’s needs. That might involve decommissioning unused services, consolidating physical hardware and rearchitecting systems to reduce unnecessary licensing fees,’ says Hall.
Location is also key. Public cloud continues to grow, but many organisations are bringing infrastructure closer to home, whether that’s on-premises or at the edge, to gain more control, reduce latency and improve cost transparency. Hybrid strategies are increasingly becoming the norm, not the exception.
Hall says, ‘The future lies in understanding which workloads belong in the cloud, which should remain on‑premises, and how to build a flexible model that supports both performance and compliance. We believe the organisations that succeed will likely be those that adopt new technologies, and build the internal strategies and partnerships to make them sustainable.
‘Across the board, we’re seeing organisations ask more questions about how to modernise without overspending. Whether it’s transport, local government or commercial operators, the message is fairly consistent: budgets are tightening, expectations are growing, and every investment needs to deliver real value,’ he adds.
Ultimately, the convergence of AI-driven analytics, digital twin advancements and renewable energy innovation signals a shift in infrastructure management. Success will hinge on aligning technological capabilities with operational pragmatism and climate-aware investment frameworks.