Home > Latest News > Data Centre Giant NextDC To Raise A$1.3 Billion For Expansion Plans

Data Centre Giant NextDC To Raise A$1.3 Billion For Expansion Plans

NextDC (Image: Sourced from NextDC website)

The ASX-listed data centre developer, NextDC, which has a market cap of approximately A$8.6 billion now wants to raise over a billion dollars through a new push to support its mega expansion.

It has entered a capital raising round by way of an entitlement offer to raise A$1.3 billion, and is seeking that amount via a 1-for-6 entitlement offer of 85 million shares at a 7.8 per cent discount.

At present, NextDC, operates or is in the middle of constructing 15 data centres spread across Brisbane, the Sunshine Coast, Canberra, Sydney, Melbourne, Darwin and Perth, with capacities ranging from 6 megawatts to 300 megawatts.

The new capital is expected to spur the development of two data centres in Sydney and Melbourne.

NextDC will build an AI supercentre in Port Melbourne. It will turn the former Herald & Weekly Times Westgate Print Centre into a purpose-built AI data centre with hundreds of employees. That facility alone will require more than a billion-dollar investment.

NextDC (Image: Sourced from NextDC website)

NextDC says it will need to spend as much as A$3.4bn over the next few years, including the A$1.3bn from the latest funding round. Of that, A$862m is to support its development pipeline, A$400m will be allocated to accelerate built capacity and A$25m are costs associated with the $1.3bn entitlement offer.

Also, approximately A$415m will go toward speeding up the development of its S3 data centre in Artarmon, Sydney, and A$330m to the development of its M2 data centre in Tullamarine, Melbourne.

It will spend a further A$350m on its S4 data centre in Sydney’s Horsley Park and $A300m on S5, also in Sydney at Macquarie Park.

Beyond Australia, the company is also planning five new data centres, including in New Zealand and Malaysia, and is evaluating potential sites in Tokyo and Singapore.

Investor confidence in NextDC is robust at the moment, with the company reporting a total revenue increase of 31 per cent to A$209.1 million for the six-month period ending December 31.

The company has hired Morgan Stanley and RBC Capital Markets to advise on the latest deal.

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