NEXTDC Limited has announced that it has entered into an agreement to purchase a new data center site, S7, which is expected to significantly boost its capacity and capabilities in the region. With a potential capacity of 550MW, S7 represents a major investment in Australia’s digital infrastructure.
The S7 site is in Eastern Creek, approximately 45 kilometres west of Sydney’s Central Business District and approximately 8 kilometres from the Company’s existing S4 site in Horsley Park, which is currently in planning.
According to the company, both sites represent a significant expansion opportunity in the Western Sydney Availability Zone. The S7 site covers approximately 258,000 sqm of developable land area and is in close proximity to a major electricity substation as well as telecommunications, utilities, and associated public infrastructure. Subject to Development Approval, S7 is expected to accommodate a data centre facility capable of approximately 550MW of
capacity, in addition to housing customers’ mission critical operation centres, administrative offices and collaboration spaces.
The purchase price of the S7 site is approximately A$353 million(before taxes and transaction costs) . Subject to satisfaction of the conditions in the agreement, NEXTDC will progressively settle on the S7 land parcels across FY25.
NEXTDC will not attribute the S7 property holding costs within its FY25 Underlying EBITDA guidance due to the uncertainty over the timing and quantum of such costs pending completion of the purchase.
NEXTDC adds that its FY25 capital expenditure guidance remains unchanged in the range of A$1,300 million to A$1,500 million.