HPE & 2degrees build sovereign AI cloud in New Zealand

HPE and 2degrees have agreed a strategic collaboration to develop a private AI platform for the New Zealand telecoms operator, using HPE Private Cloud AI and keeping customer and operational data onshore.

The companies said the platform forms part of 2degrees' work to modernise and simplify its technology environment. They said it would operate as a sovereign AI platform under New Zealand jurisdiction and governance controls.

HPE said the platform uses HPE Private Cloud AI, which it co-developed with Nvidia as part of Nvidia AI Computing by HPE. The companies said the approach would provide an on-premise environment that combines data management and AI analytics.

Onshore data

The collaboration places data sovereignty at the centre of the project. The companies said the system would keep critical data stored in New Zealand rather than in offshore environments.

The statement comes as many organisations review where they place sensitive information and how they manage regulatory requirements. The companies linked the decision to a wider focus on complex data regulations across multiple jurisdictions.

HPE said 2degrees would use the platform to allocate resources across AI use cases and to scale compute and storage as demand changes. The companies said the platform would maintain full data sovereignty during that scaling.

Network use cases

2degrees said it will start with network-focused AI projects. Initial use cases include autonomous network operations, predictive maintenance and AI-powered capacity planning.

The companies said these use cases tie to day-to-day telecoms operations, including reliability and performance management. They said the platform targets reduced downtime and improved network reliability.

HPE described the architecture as a "turnkey AI factory". It said the design would cut internal development cycles. It also said it would optimise network operations and speed the rollout of new customer offerings.

Nvidia Enterprise software and AI infrastructure will form part of the deployment, according to the companies. They said it would support network performance and resilience. They also said it would support predictable and scalable networks.

Partner comments

HPE positioned the project as an example of AI deployment under local control.

"Our collaboration with 2degrees demonstrates what is possible when you combine local expertise with HPE's world-class innovation," said Colin Henderson, Managing Director, New Zealand at HPE. "By deploying HPE's turnkey AI factory, 2degrees is setting a benchmark for how New Zealand organisations can use AI responsibly - accelerating transformation while maintaining full control over their data."

2degrees said the arrangement fits its plans for innovation and growth. It also tied the platform to a broader technology roadmap for the business.

"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," said Stephen Kurzeja, Chief Technology and Information Officer at 2degrees. "NVIDIA and HPE's private AI solution gives us the capability to move faster, unlock deeper insights from our data, and build AI-driven solutions that make our network smarter, more resilient, and responsive to the needs of customers across New Zealand. 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."

Kurzeja said 2degrees has already seen results in early work tied to the programme.

"We've already seen strong results across multiple areas," said Kurzeja. "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 companies said the platform creates a foundation for further AI work across 2degrees, including ongoing development of network and customer-focused products and features.