The SKA's dishes will produce 10 times the amount of today's global internet traffic, spitting out enough data that just one day's worth would take nearly two million years to play back on an iPod.
The collaboration is working on cutting-edge computer nodes, algorithms and software to ensure the supercomputer will keep up with the unprecedented data rates.
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Auckland University of Technology scientist Dr Andrew Ensor, who heads the NZ SKA Alliance, said the global project represented many firsts for New Zealand - including being the largest science effort Kiwis have ever led substantial parts of, and what was becoming the country's longest-ever academic-industry collaboration.
Nicolas Erdody said his Oamaru-based software company Open Parallel had had up to a dozen people working on the SKA computing work for the past six years.
The new funding would mean more staff and more collaboration with top universities and foreign multinational companies.
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Beyond benefits to New Zealand - some players have suggested it could help make the country a "global data hub" - it's likely we cannot even dream of predicting today the biggest discoveries the SKA will make.
It's partly why the SKA will have a life span of at least 50 years, first taking shape with 200 dishes in South Africa and about 130,000 in Australia, all of which will be in place by 2023.
By 2030, the project will have been scaled up to 2000 dishes in South Africa and one million antennae in Australia.
The SKA telescope
• Will be the world's largest, most sensitive radio telescope, costing more than $2 billion and involving 350 scientists and engineers.
• Stationed in Australia and Africa, the telescope will consist of dishes and millions of dipole radio receptors.
• With an effective collecting area of 1 sq km, will be 100 times as sensitive as the biggest present-day telescopes and have image resolution quality 50 times the Hubble telescope's.