Strategic Infrastructure Partnership Redefines AI Deployment in New Zealand’s Telecom Sector
New Zealand’s telecommunications landscape is undergoing a fundamental transformation as organizations grapple with competing demands: the need for cutting-edge AI capabilities versus the imperative to maintain data sovereignty. While global cloud platforms offer powerful AI tools, they often require organizations to relinquish control over sensitive customer and operational data—a trade-off that becomes increasingly problematic as regulatory scrutiny intensifies and digital sovereignty emerges as a strategic priority.
HPE (NYSE: HPE) and 2degrees, one of New Zealand’s leading telecommunications and technology providers, have announced a strategic collaboration that directly addresses this challenge. The partnership centers on deploying HPE Private Cloud AI to create a purpose-built, sovereign AI platform that keeps critical data within New Zealand’s jurisdiction while delivering enterprise-grade AI capabilities.
On-Premises AI Infrastructure Enables Data Sovereignty Without Compromise
The solution represents a departure from conventional cloud-first approaches. By implementing a turnkey AI factory architecture co-developed with NVIDIA as part of NVIDIA AI Computing by HPE, 2degrees gains the ability to dynamically allocate resources across multiple AI use cases while scaling compute and storage as demand evolves—all within an on-premise environment that ensures complete data sovereignty.
“Using HPE Private Cloud AI, co-developed with NVIDIA as part of NVIDIA AI Computing by HPE, 2degrees will be able to dynamically allocate resources across AI use cases and scale compute and storage as demand evolves—while maintaining full data sovereignty,” the companies stated.
This architecture modernizes 2degrees’ technology environment into a unified, flexible platform designed to improve reliability, reduce downtime, and optimize network performance. The integrated environment combines secure data management with advanced AI-driven analytics, creating a foundation for both operational excellence and customer-facing innovation.
Accelerating Network Operations Through AI-Powered Automation
The platform supports several high-impact AI use cases that directly address telecommunications operational challenges. Initial deployments focus on autonomous network operations, predictive maintenance, and AI-powered capacity planning—applications that demand both processing power and real-time access to sensitive network data.
“We’ve already seen strong results across multiple areas,” said Stephen Kurzeja, Chief Technology and Information Officer at 2degrees. “For example, local AI is a critical enabler for AI-driven network operations with multiple local AI agents moving us toward a smarter, more resilient, and increasingly self-driving network that better serves customers across New Zealand.”
The NVIDIA Enterprise and AI infrastructure enables 2degrees to deliver enhanced network performance alongside more resilient, predictable, and scalable services. By significantly reducing internal development cycles, the platform allows 2degrees to develop and release new products and features faster while responding more effectively to evolving market needs.
Setting a Benchmark for Responsible AI Adoption in the Region
The collaboration establishes a precedent for how organizations can leverage enterprise AI without compromising data governance. “By deploying HPE’s turnkey AI factory, 2degrees is setting a benchmark for how New Zealand organizations can use AI responsibly—accelerating transformation while maintaining full control over their data,” said Colin Henderson, Managing Director, New Zealand at HPE.
This approach becomes particularly relevant as organizations worldwide navigate complex data regulations across multiple jurisdictions. By ensuring that New Zealand customer and operational data remain under New Zealand jurisdiction and governance controls, 2degrees addresses both regulatory compliance and customer trust considerations simultaneously.
“Partnering with HPE allows us to innovate and grow with confidence as we continue our journey to become New Zealand’s leading telco in value, innovation and growth,” Kurzeja explained. “HPE Private Cloud AI also allows us to safely and securely embed AI across 2degrees as we accelerate real-world multi-agent AI use cases.”
The partnership signals a broader strategic commitment to building New Zealand’s sovereign digital infrastructure while advancing telecommunications innovation through responsible AI deployment.
About HPE
HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.
