NEXTDC's new data centre site acquisition

NEXTDC (ASX:NXT), a prominent Australian data centre provider, has announced the acquisition of a new site for the S7 data centre in Eastern Creek, Western Sydney. This strategic expansion aims to bolster the Western Sydney Availability Zone. The site, valued at approximately A$353 million, will support around 550MW of capacity when fully developed, providing critical operational and collaboration spaces for customers.

NEXTDC's strategic and financial outlook

NEXTDC's acquisition of the S7 site in Eastern Creek marks a major expansion in their data centre capabilities, reinforcing their strategic presence in Western Sydney. The development is poised to support up to 550MW of capacity and cater to the growing digital infrastructure demands of enterprises and government entities. The purchase aligns with their FY25 capital expenditure guidance of A$1,300 million to A$1,500 million. NEXTDC maintains a commitment to sustainability, with this expansion enhancing their ability to provide reliable, carbon-neutral data services. The company continues not to factor in property holding costs for S7 in the FY25 Underlying EBITDA guidance due to associated uncertainties.

Insights from NEXTDC on the S7 site acquisition

The development of S7 is a pivotal step in expanding our capacity to meet the increasing demand for critical digital infrastructure. By strategically positioning S7 near essential infrastructure, we are ensuring our customers have the reliable, sustainable services they need. As we continue to grow, we remain committed to delivering world-class, certified carbon-neutral operations.