Budget 2026 allocates $57.7 million over four years to modernise Stats NZ's Integrated Data Infrastructure after years of capacity shortfalls and outdated systems.
Funding Announcement
The New Zealand government will spend $57.7 million over four years to upgrade the Integrated Data Infrastructure (IDI) at Stats NZ. The three-year project aims to replace legacy technology with faster, more reliable systems.
Minister of Statistics Scott Simpson said the investment will give decision-makers a clearer, more up-to-date picture of communities. He added that better data means funding is directed to where it is needed most.
"The IDI shows us what is working, and what is not. It makes sure Government decisions are based on facts, not guesswork, and taxpayer dollars are directed where they can make the biggest difference for New Zealanders." — Scott Simpson, Minister of Statistics
Simpson also said: "The current IDI is built on old technology. This critical Government investment will ensure our data infrastructure keeps up with growing demand and more complex use, giving decision-makers a clearer, more up-to-date picture of what's happening in our communities."
Scale of the IDI
The IDI links de-identified data from 29 databases across government agencies. It covers more than nine million individuals and contains eight billion data points stretching back to the 1980s. The system supports research on education, health, justice, welfare and tax outcomes.
Past Capacity Issues
The platform has operated in prototype form since 2011. In November 2025 researchers reported the main testbed ran at just 1 percent capacity. The system was budgeted for 550 users yet more than 1,000 had signed on. Updates occurred only three times a year.
A $1.4 million interim patch in the first half of 2025 added sandpits for high-demand users. A Stats NZ briefing to ministers described the infrastructure as clunky and slow, with high technical barriers — warning it was not yet ready to support the Social Investment Fund without upgrades.
Researcher Views
Malcolm Mersham of Trust Tairāwhiti said the system is "pretty clunky and very challenging to find the data." He added: "For any person from the streets or average Joe, it would be incredibly difficult for them to actually find useful information about their communities."
Professor Barry Milne of the University of Auckland said his sense is the system "needs a kind of complete restructure" — despite its low access cost, which overseas colleagues reportedly envied at around $500.
Professor Tahu Kukutai has raised Māori data sovereignty concerns as reliance on administrative data grows ahead of the post-2030 census model.
Upgrade Details
The project will enable more simultaneous users, faster data ingestion, more frequent refreshes and more complex queries. Privacy protections will remain strong with all data staying de-identified.
- Replacing legacy systems with faster, more reliable technology that can handle larger volumes of data
- Enabling more users to access data at the same time, with tools that support faster and more complex analysis
- Increasing how often data is updated
- Maintaining and strengthening privacy protections, with data remaining secure and de-identified
The Social Investment Agency and agencies including Treasury, MSD and Oranga Tamariki stand to gain quicker turnaround on policy modelling.
Fiscal and Policy Impact
The upgrade addresses long-standing technical debt that has limited evidence-based decision making. Successful delivery could improve targeting of social spending and reduce inefficient allocation of public funds over the medium term.
