NEXTDC to raise $1.5 billion to accelerate Sydney data centre rollout

NEXTDC plans to ⁠raise $1.5 billion to accelerate the rollout of its S4 Sydney data centre and align with initial delivery timelines.

File photo.

The entitlement offer ‌gives existing shareholders the chance to ‌acquire ‌new shares at $12.70 each, at ‌a ratio of roughly one ⁠new share for every 5.4 shares they already own.

Canada's La Caisse has committed an additional $700 million, following its initial $1  billion pledge earlier ​this month.

"This is a unique opportunity to materially expand NEXTDC's contracted capacity and de-risk ⁠the company's Western Sydney developments ahead of potential strategic partnership transactions with private capital partners from 2027," said CEO and managing director Craig Scroggie, referring to the capital raise.

The data centre operator said pro forma contracted utilisation, the total power capacity formally signed up by customers, jumped by ​roughly 60 percent to 667 megawatts (MW) as ⁠of March 31, compared with ⁠end-December 2025.

NEXTDC raised its fiscal 2026 capital expenditure by $300 million to ​the range of $2.7 billion to $3 billion, ‌reflecting investment ⁠in faster inventory build-out and equipment procurement for its S4 facility.

The S4 facility, located in Horsley Park, will have a ‌capacity of 350 megawatts, according to the company website.

NEXTDC said it continues to evaluate capital partnership structures for its Western Sydney developments with third-party ​investors as projects progress.

Citi analysts said the equity raise and the upsized hybrid issuance were positive, signalling strong demand environment and ‌highlighting NEXTDC's ⁠ability to win ​large hyperscale contracts.