NEXTDC: NextDC seeks funding for expansion plans

Apr 11, 2024 | Posted by Abdul-Rahman Oladimeji

Australian data center operator NextDC is seeking to raise AU$1.3 billion to fund its expansion plans. The company plans to raise the cash from existing investors via a share issue, which will allow its backers to purchase one new share in the company for every six they already own.

NextDC says it needs the money to continue its build-out of digital infrastructure to meet high demand. It said it expects a 71 percent jump in contracted capacity utilization this year. Craig Scroggie, CEO of NextDC, said the company “continues to see significant growth in demand for its data center services underpinned by powerful structural tailwinds.”

He added: “Amid this backdrop, we have decided to bring forward the development and fit-out 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.”