NextDC shares jump on increased data centre uptake
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More news: NextDC shares soared in morning trade after the data centre operator announced that contracted utilisation of its data centres increased by 7% during the month of May.
NextDC shares were up 7% to $14.10 at 11:15am AEST, having dropped more than 20% over the previous 12 months.
Other data centre owners such as Goodman Group (1.6%), HMC Capital (2.7%) and DigiCo Infrastructure REIT (4.4%) also climbed.
NextDC hikes contracted data centre utilisation by 7% in May
The news: Data centre operator NextDC said that recent customer contract wins has seen contracted utilisation of its data centres increase by 7% in less than a month.
The numbers: The company said that after recent customer contract wins, its contracted utilisation at 31 May has increased by 16 megawatts (MW), or 7%, to 244MW since 6 May.
The largest increase in contracted utilisation has come from NextDC's KL1 site in Kuala Lumpur, which now has 10MW of contracted capacity, representing 15% of its planned capacity. KL1 is due to go live in early calendar 2026.
The context: NextDC said most of the revenue from the new customer contract wins is expected to ramp up during fiscal 2027 following the completion and commissioning of additional data halls. The full revenue impact from these contracts will be realised from fiscal 2028 onwards, the company said.
What they said: "KL1 represents a strategic milestone in NextDC's Asia expansion and reinforces our commitment to delivering sovereign, AI-native digital infrastructure across high-growth regional markets," said NextDC's CEO and managing director Craig Scroggie.
"Securing our first 10MW hyperscale customer ahead of launch in Kuala Lumpur is a strong endorsement of our execution capability and validates KL1's role as AI-native digital infrastructure," he said.
The source: ASX
