NEXTDC: NEXT Decade Covered

About the author:

Author name:

By Nick Harris

Job title:

Senior Analyst

Date posted:

12 May 2023, 7:00 AM

Sectors Covered:

Telecommunications, Technology

• NEXTDC (ASX:NXT) has firmed its long anticipated plans for overseas expansion and will ease its way into these 2 new countries. NXT will spend an average of A$130m pa over the next three years for practical completion in 1H26. The company has raised A$618m to mostly fund Kuala Lumpur (KL1) and Auckland (AK1) DC builds. $150m goes to fast tracking S3 and the balance towards corporate and transaction costs.
• After spending a decade plus building out NXT’s Australian business, and several years undertaking due diligence for overseas expansion, we are confident that plan leverages NXT’s competitive advantage (including 100% uptime guarantee, hybrid cloud/enterprise environment, and substantial partner ecosystem). Healthy contract wins across enterprise and cloud should follow, with time.

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