(Reuters) - Telecommunication firm Spark New Zealand said on Wednesday it will invest more in data centres and its 5G business over the next three years as part of a new strategy.
The company will spend NZ$250 million ($157.78 million) to NZ$300 million in the data centre market until fiscal 2026, and between NZ$40 million and NZ$60 million in the 5G business.
Spark and several other regional telcos have been looking to reduce their reliance on physical towers and boost their technology with investments on digital infrastructure and data centres.
In July last year, Spark sold a 70% stake in its towers business for NZ$900 million to Canadian investment firm Ontario Teachers' Pension Plan Board.
"If there is one thing the last three years have taught us, it is that the businesses that will thrive are the ones that can adapt the most quickly to change," the company said in a statement.
In its interim financial report for fiscal 2023, Spark noted that the expansion of its Takanini data centre was expected to complete in the second half of the year. Spark invested NZ$50 million in its data centres business in the first half of fiscal 2023.
Back in February, Spark said it had allocated NZ$350 million of proceeds from the sale of its towers to invest in digital infrastructure, data centres and emerging technologies, with about NZ$90 million to NZ$110 million earmarked for fiscal 2023.
($1 = 1.5853 New Zealand dollars)