Your website is stored on a physical server in a data centre somewhere in the world. Where that is can affect how quickly your site loads for visitors, and which countries' laws apply to the information it holds. It is easy to overlook, because many providers do not make it obvious.
Server distance and page speed
Every time someone loads a webpage from a server, data travels from their device to that server and back again. The further apart they are, the longer each round trip takes. For a visitor in New Zealand, a server in New Zealand will generally respond faster than one in Australia, and a server in Australia faster than one in the United States or Europe.
The difference for a single request is a fraction of a second. A typical web page involves many requests, though, so the delays add up. For a site whose visitors are mostly in New Zealand, hosting in or near New Zealand is likely to give them a faster experience.
Data sovereignty and privacy law
Data sovereignty refers to the fact that information is subject to whatever laws apply to the companies that provide your hosting. The physical location of your data is always a consideration here, but it is not the only one. This can get complicated if, for example, a New Zealand hosting provider resells services from an American tech company that rents server space in an Australian-owned data centre in Auckland. If your website collects personal information, such as contact form submissions, customer accounts, or order details, think about where it is stored and who by.
As a general guide:
- New Zealand's Privacy Act 2020 applies to how you handle personal information, wherever that information is stored.
- Information stored overseas may also be subject to the laws of that country, including laws that allow government access.
- Some organisations, particularly in government, health, and finance, have policies or contracts requiring data to be held in New Zealand.
This is not legal advice. If your website handles sensitive personal information, it is worth checking your obligations with someone qualified to advise on them.
Many providers serving NZ are based overseas
Several hosting providers that sell to New Zealand customers are based in other countries, and some store websites outside New Zealand by default. A .nz domain or a New Zealand phone number does not necessarily mean your website is hosted here.
Overseas providers can also quote prices in foreign currencies, which we cover in Comparing Apples to Apples: Currency, Billing Cycles, and Total Cost.
When location matters less
Server location is less important in some situations:
- Your audience is global. If your visitors are spread around the world, no single location is closest to all of them.
- You use a content delivery network (CDN). A CDN keeps copies of parts of your site in many locations, so visitors are served from somewhere near them. Some content is still served from the main server, however.
- Your site stores no personal information. A simple information site with no forms or accounts raises fewer data sovereignty questions.
Questions to ask a provider
Server location is worth checking when comparing web hosts. Useful questions include:
- In which country, and which city, will my website and its data be stored?
- Can I choose the location?
- Are backups stored in the same country, or somewhere else?
- Is email for my domain stored in the same place as my website?
- Which country's law does the provider's contract fall under?
Backups and email are easy to forget, but they hold copies of your data too. What Should Come Standard: SSL, Backups, and Email Hosting covers what to expect from each. Server location is one of the factors included in A Practical Checklist for Comparing Hosting Providers Side by Side.
*This article was drafted with the help of AI. It was fact-checked and edited by a real person.