Datacom Group profit drops to $20m as data-centre spending rises
Profit at New Zealand technology company Datacom Group fell to $20 million even as revenue rose. The company said its profit almost halved because of heavy investment in data-centre infrastructure and AI-ready computing capacity.
Datacom Group, one of New Zealand's leading technology companies, said its profit fell to $20 million even though revenue increased. The company's profit almost halved compared with the previous period.
Datacom said the decline was driven by heavy investment in data-centre infrastructure and AI-ready computing capacity. Building capacity in cloud and AI services, where demand is rising, raises costs in the short term.
Many technology firms across the sector are making similar investment decisions to capture future growth. How Datacom's strategy feeds through to profitability will be tested by the company's performance in the periods ahead.
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