NextDC hikes capex guidance, unveils $2.2b capital plan
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The news: Data centre operator NextDC has hiked its FY26 capex guidance by $300 million, after reporting an 83% jump in its forward order book in the March quarter.
The company also announced a fully underwritten $1.5 billion entitlement offer at $12.70 a share, having last closed at $14.12.
The numbers: NextDC now expects full-year capex between $2.7 billion and $3 billion, up from previous guidance of $2.4 billion to $2.7 billion.
The company said that, following recent customer contract wins, its pro forma contracted utilisation has increased by 250 megawatts, or 60%, to 667 megawatts over the three months to 31 March.
NextDC’s pro forma forward order book increased by 247 megawatts, or 83%, to 544 megawatts over the same period.
The context: The group said its FY26 net revenue and underlying EBITDA guidance remain unchanged. It noted the pro forma forward order book is expected to “progressively convert” to billing utilisation, revenue and EBITDA from FY26 to FY230.
NextDC said the capital raise was a response to the “step change” in contracted utilisation and the accelerated deployment of its S4 data centre in Sydney.
It forms part of a $2.2 billion capital plan, including a $700 million binding commitment by Canadian investment group La Caisse, in addition to its existing $1 billion commitment announced earlier this month.
What they said: “The scale of this increase in contracted utilisation and the resulting uplift in the company’s prof forma forward order book are unprecedented, underscoring the record levels of demand we continue to experience,” said NextDC chief executive Craig Scroggie.
“While raising equity is not a step we take lightly, this is a unique opportunity to materially expand NextDC’s contracted capacity and de-risk the company’s Western Sydney developments ahead of potential strategic partnership transactions with private capital partners from 2027.”
The source: ASX
