NEXTDC Ltd. (ASX:NXT) - CEO, Craig Scroggie
CEO, Craig Scroggie
Image sourced: La Trobe University
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Data centre operator NEXTDC (NXT) maintains its stronghold in the Southern Hemisphere, boosting business at its Melbourne centre
  • The company said this week that its Victorian-based centre will now see 28 megawatts (MW) of business, up from 15MW
  • MW are used as a benchmark to estimate the power of a data centre, much like estimating square footage of a property
  • NEXTDC sits as a kingpin for data management in the Southern Hemisphere, saying more will follow as expansions continue at the Melbourne institute
  • Shares in the company increased 2.61 per cent on Wednesday for $8.27 each

Data centre operator NEXTDC (NXT) has boosted business at its Melbourne location.

The company announced to the Australian market on Wednesday that contracted use of its services have increased from 15 megawatts (MW), to 28MW.

This figure includes contracted business that is yet to hit its full stride as well.

MW are used as the rule of thumb to estimate the capacity and output of a data centre.

For example, Google says its flagship global data centre performs above a minimum of 500MW.

Because of the increase in contracted services, NEXTDC has also upped its estimated expenditure for the Financial Year to a maximum of $340 million. Previously, it was slated for $300 million.

“This is a very exciting new phase in development of NEXTDC’s operations in Victoria,” Chief Executive Craig Scroggie said.

Craig explained that the planning of long term business investments have started to shine — along with a strong pipeline of sales.

Planning of expansions at the Melbourne centre continue, while revenue from the latest contracts are expected to roll in.

“We are very pleased to have now locked in material commitments against these expectations,” Craig said.

“The demand for our data centre services continues to accelerate and requires discipline and patience as the nexus between hyperscale capacity planning, site development, infrastructure deployment and revenue recognition can, in practice, be up to 2-3 years,” he added.

NEXTDC is also expecting capacity at the centre to increase by another 12MW after a fourth stage of construction.

The company was founded in 2010, today sitting on the Australian Securities Exchanges’ (ASX) top 200 list since 2016.

NEXTDC operates eight data centres across Australia — stationed in Melbourne, Sydney, Brisbane, Perth, and Canberra.

Two of the company’s data centres are certified as ‘Tier IV’ standard, making them unique in the Southern Hemisphere.

Shares in NEXTDC on the ASX boosted 2.61 per cent on Wednesday, closing the day at $8.27 each.

NXT by the numbers
More From The Market Herald
The Market Herald Video

" Jetstar CEO to step down while Qantas (ASX:QAN) cuts flights

Qantas (ASX:QAN) has broken the news that Jetstar CEO Gareth Evans will be stepping away from…
The Market Herald Video

" Pilbara Minerals (ASX:PLS) secures $9000/dmt lithium sale from pre-auction bid

Pilbara Minerals (ASX:PLS) has entered into a sales contract for its spodumene concentrate cargo after accepting…
Metcash (ASX:MTS) - Outgoing CEO, Jeff Adams

" Metcash (ASX:MTS) ups revenue and launches share buyback as revenue reaches record heights

Grocery and hardware giant Metcash (ASX:MTS) has launched a major share buyback and bolstered its annual…
Metcash (ASX:MTS) - Outgoing CEO, Jeff Adams

" Metcash (ASX:MTS) Group CEO steps down

Metcash’s (ASX:MTS) group CEO, Jeff Adams, announces his intention to retire from the role, after a…