NextDC agrees to buy new Sydney data centre for $353m
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The news: Data centre operator NextDC has agreed to purchase a new Sydney-based site, S7, for $353 million.
The numbers: The S7 site is located in Eastern Creek, approximately 45km west of Sydney’s CBD. It spans around 258,000 square metres of developable land and is situated near a major electricity substation, as well as key telecommunications, utilities and associated infrastructure, according to NextDC.
Subject to development approval, the S7 site is expected to accommodate a data centre facility with a capacity of around 550 megawatts. It will also include space for NextDC’s customers’ operations centres, administrative offices and collaboration spaces.
NextDC said its FY25 capital expenditure guidance remains unchanged in the range of $1.3 billion to $1.5 billion.
The context: NextDC said it will progressively settle the S7 land parcels throughout FY25, subject to meeting the conditions of the purchase agreement.
The Brisbane-based company said it will not attribute the S7 property holding costs within its FY25 underlying EBITDA guidance due to "the uncertainty over the timing and the quantum of such costs" pending completion of the purchase.
In August, NextDC told investors that it is focused on pursuing strategic investments to take advantage of the "unprecedented" level of customer demand in data centres, spurred by a boom in AI and cloud technologies.
The source: ASX announcement
