NextDC Ltd
(ASX: NXT)Share Price and News
About NextDC (ASX:NXT)
NextDC is the biggest data centre stock on the ASX and the second biggest in Oceania after Equinix. As of 31 December 2025, it has >297MW contracted utilisation across more than a dozen data centres across Australia.
Today, NEXTDC operates and develops a network of high-performance data centres that form part of the critical infrastructure supporting Australia’s rapidly growing digital economy.
In recent years the company has begun expanding internationally, including developments in Kuala Lumpur, Tokyo and other Asia-Pacific markets, reflecting growing demand for digital infrastructure in the region. The rise of artificial intelligence and hyperscale cloud computing has further increased demand for large data centre campuses.
NextDC's Company History
NextDC was founded in 2010 by Bevan Slattery to meet Australia's increasing demand for data centre services. The company listed on the ASX early that year to raise funds to develop data centres in Brisbane and Melbourne.
NextDC listed early in its life because of the extreme amount of capital needed and difficulty of sourcing it from private markets back then. Some of it was funded by Slattery’s sale of Pipe Networks for $373m in 2010, but it needed further capital. When the company listed, it raised $40m at $1 per share in a deal valuing the company at $80m. It is now worth over $8.5bn - impressive.
The initial centres laid the foundation for a secure and impartial network of facilities. In 2012, Slattery stood aside and Craig Scroggie became CEO, a position he still holds today.
NextDC has developed new facilities in Sydney, Perth, and Canberra to support enterprise needs across business and government sectors. Significant milestones include obtaining Tier III and Tier IV certifications, recognised for energy-efficient, reliable, and uninterrupted operations. NextDC also connected users directly to major cloud platforms to support Australia's digital development.
More recently, NextDC entered a new growth phase by building hyperscale-ready data centres such as M3 in Melbourne and S4 in Sydney. The company has new projects overseas including in Japan, Malaysia, and New Zealand.
Future Outlook of NEXTDC (ASX: NXT)
NEXTDC’s future outlook is strongly tied to the rapid growth of cloud computing, artificial intelligence and digital services. As businesses and governments increasingly rely on data-intensive applications, demand for high-capacity data centres continues to expand across Australia and the Asia-Pacific region.
One of the key indicators of future growth for the company is its expanding contracted utilisation and forward order book. The company reported contracted utilisation of over 416 megawatts, while its forward order book reached nearly 297MW, representing future customer commitments that are expected to convert into revenue over several years.
NEXTDC has also been accelerating its infrastructure development pipeline to meet strong demand from hyperscale cloud providers and AI workloads. New facilities and expansions are currently underway across Australia, including major projects in Sydney and Melbourne, as well as international developments such as the KL1 data centre in Kuala Lumpur.
For FY26, the company has provided detailed financial guidance. NEXTDC expects: Net revenue of $390-400m; Underlying EBITDA to be A$230-240m and Capital expenditure of A$2.4-2.7bn to accelerate new data centre capacity. The company’s large forward order book is expected to progressively convert into billings and revenue between FY26 and FY29, supporting long-term earnings growth.
If demand for AI infrastructure and cloud computing continues to expand at current rates, NEXTDC’s pipeline of new data centre developments could provide significant growth opportunities over the next decade.
Is NXT a Good Stock to Buy?
To make a long story short, NXT suits investors willing to commit for the long term and accept short-term volatility in exchange for future growth potential.
NEXTDC has become one of the most prominent technology infrastructure companies listed on the ASX. The company operates in the rapidly growing data centre industry, which underpins cloud computing, artificial intelligence, digital services and internet connectivity.
One of the biggest strengths of NEXTDC is its exposure to structural technology trends. As organisations generate and process increasing amounts of data, demand for reliable data storage and high-performance computing infrastructure continues to rise. This demand has been further accelerated by the growth of AI, which requires enormous amounts of computing power and data processing capacity.
The company’s carrier-neutral model is also attractive to customers. By allowing multiple telecommunications providers and cloud platforms to connect within the same facility, NEXTDC creates a highly interconnected digital ecosystem that can attract large enterprise clients.
Another positive factor for investors is the company’s strong sales pipeline and forward order book, which provides visibility over future revenue growth. Customer contracts signed today may take several years to convert into revenue as new data centre capacity is completed, creating a long pipeline of potential earnings.
However, there are also risks. Data centre development requires extremely high levels of capital investment, and NEXTDC is currently spending billions of dollars to expand its infrastructure. While this investment supports long-term growth, it can also result in lower short-term profitability. Competition is also increasing as global technology companies and infrastructure investors build their own data centres.
Ultimately, NEXTDC may appeal to investors seeking exposure to the long-term growth of cloud computing, artificial intelligence and digital infrastructure, though its capital-intensive business model means returns may depend heavily on the successful execution of its expansion strategy.
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Frequently Asked Questions
NEXTDC builds and operates data centres that enable businesses to host their IT systems in secure, reliable, and high-performance environments. It also connects customers to cloud and telecom providers.