SoftBank’s $4 Billion Data Centre Deal: Why NEXTDC Could Be the Next AI Infrastructure Winner

NEXTDC: The SoftBank Signal and What It Means for Investors

Japan’s SoftBank just made a bold statement about where it sees the future of AI heading. The tech investment giant announced it will acquire DigitalBridge, a US-based data centre investment firm, for US$4 billion. The deal, which values DigitalBridge at US$16 per share, representing a 15% premium, underscores how critical physical infrastructure has become to the AI revolution. For Australian investors, this raises an important question: could NEXTDC (ASX: NXT), the country’s largest pure-play data centre operator, be next in line to benefit from this global trend?

What are the Best ASX Tech Stocks to invest in right now?

Check our buy/sell tips

SoftBank Deal Validates the AI Infrastructure Boom

SoftBank’s acquisition isn’t just about buying data centres. It’s a strategic bet that whoever controls AI infrastructure will capture enormous value over the coming decade. DigitalBridge manages US$108 billion in digital infrastructure assets globally, including stakes in major data centre operators.

This matters for NEXTDC because the company sits at the centre of Australia’s AI infrastructure build-out. Unlike software-focused AI plays that depend on which tools win market share, data centres win regardless of which AI models succeed. They’re the picks and shovels of this gold rush.

NEXTDC has positioned itself well to capture this demand. The company recently signed a memorandum of understanding with OpenAI to develop an AU$7 billion hyperscale AI campus at its S7 site in Sydney. This partnership, part of OpenAI’s first Asia-Pacific infrastructure program, could make NEXTDC a cornerstone for sovereign AI computing in Australia.

With a partner ecosystem of over 750 cloud and network providers, NEXTDC has the connectivity that hyperscale customers demand. For investors, this diversification reduces reliance on any single customer while positioning the company at the centre of Australia’s digital economy.

NEXTDC Delivers Strong Growth But Remains Years From Profitability

The operational momentum here is hard to ignore. In late December, NEXTDC announced its contracted utilisation had jumped 30% to 412 MW, a pace that surprised even bullish analysts. The forward order book now sits at 301 MW, essentially locking in years of future revenue that will progressively flow through to FY29.
FY25 results showed similar strength, with net revenue climbing 14% to A$350.2 million and EBITDA growing 6% to A$216.7 million. Management expects this momentum to continue, guiding to FY26 net revenue of A$390-400 million and EBITDA of A$230-240 million.

However, there’s a catch investors need to understand. Despite strong top-line momentum, NEXTDC remains loss-making – it posted a A$60.5 million net loss in FY25. The culprit is the enormous capital required to build ahead of demand, with FY26 capex guided at A$2.2-2.4 billion. Consensus estimates don’t see profitability arriving until FY29, and the stock trades at roughly 40 times EV/EBITDA – a valuation that leaves little room for execution missteps.

The Investor’s Takeaway for NEXTDC

The bull case for NEXTDC is compelling: AI infrastructure is a structural growth theme, demand is locked in through contracted orders, and brokers see meaningful upside from current levels. The average analyst price target sits around A$20, implying roughly 50% upside from recent prices around A$13.

The bear case centres on execution risk. This is a capital-intensive business still years from profitability, and the A$7 billion-plus S7 development with OpenAI requires significant funding. Competition from global operators like Equinix and local rivals continues to intensify.

Our view: for growth-oriented investors with a multi-year horizon, NEXTDC offers genuine exposure to one of the most powerful investment themes of the decade. However, value-focused investors seeking near-term earnings may find the valuation stretched until profitability becomes clearer. The SoftBank deal confirms global capital is flooding into this space, and NEXTDC is Australia’s best-positioned player to capture it.