NEXTDC announces A$1,321 million capital raising to meet unprecedented growth in customer demand

NEXTDC Limited (ASX: $NXT) is undertaking a capital raising of A$1,321 million through a fully underwritten 1 for 6 pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares. The net proceeds will be used to accelerate the development and fit out of NEXTDC's digital infrastructure platform in its core Sydney and Melbourne markets to meet unprecedented growth in customer demand and position itself to take advantage of ongoing market expansion over the medium term.

Executive commentary on market demand and development plans

NEXTDC Chief Executive Officer and Managing Director, Craig Scroggie, commented, 'NEXTDC continues to see significant growth in demand for its data centre services underpinned by powerful structural tailwinds. Amid this backdrop, we have decided to bring forward the development and fitout of key assets in Sydney and Melbourne to ensure we are able to meet this growth in demand, continue to support our customers, and ensure the Company is well positioned to take advantage of the diverse range of opportunities expected to present over the medium term.'

Summary of the capital raising and outlook

The A$1,321 million capital raising will largely fund the accelerated development and fitout in core Sydney and Melbourne markets to support unprecedented customer demand. NEXTDC reaffirms its FY24 guidance and outlines plans to use the proceeds for accelerating the built capacity of S3, developing S4 and S5 data centres, accelerating the built capacity of M2, land acquisition opportunities in Asia-Pacific, 2H24 capital expenditure, and general corporate purposes. The Entitlement Offer comprises an institutional and retail component, and the timetable for participation is provided. The company emphasizes the forward-looking statements and the risks associated with the capital raising. NEXTDC's focus on sustainability and operational excellence is highlighted, positioning the company as a key player in the digital economy.