In an ASX release earlier this week, NEXTDC announced that it had acquired the land along with a recently completed core and shell data centre development in Sydney. This facility is designated “S6”. The site of S6 is located in Artarmon in close proximity to the Company’s S3 data centre and 10 km from Sydney’s CBD.
Construction of the facility was completed in the first half of 2022. The facility offers up to 13.5 MW across 4,000 m2 of data hall space. The purchase price of the S6 facility was A$184 million. This stated to be in line with the Financial Year 2024 capital expenditure guidance provided at the time of the Company’s results for H1 2024.
The S6 Sydney Data Centre is being developed specifically for “AI factories and sovereign AI” according to the company’s website.
This news marks the continuation of a busy month for NEXTDC. On the 3rd March it was announced in the Australian Financial Review that was in the “early stages” of talks to acquire some of Global Switch’s data center portfolio. In the event of the acquisition proceeding, it is likely that the purchase would be funded by equity-raising.
NEXTDC now operates facilities in 10 cities and towns across Australia which collectively account for around 275,000 m2 and 800 MW capacity. The six facilities in Sydney represent around 65% of capacity.