NEXTDC has launched a AUD 1.5 billion equity raising alongside an expanded funding package, following a sharp increase in contracted data centre capacity driven by hyperscale and AI demand. The company said pro forma contracted utilisation rose by 250MW (60%) to 667MW since December 2025, while its forward order book increased by 83% to 544MW, reflecting what it described as a step change in customer demand.
To support this growth, NEXTDC is undertaking a fully underwritten pro-rata accelerated non-renounceable entitlement offer priced at AUD 12.70 per share, alongside an expanded hybrid securities offer now totalling AUD 1.7 billion.
The funding package builds on an earlier AUD 1.0 billion hybrid raise launched in April and includes a new AUD 700 million delayed draw tranche, with La Caisse increasing its total commitment to AUD 1.7 billion. Combined with existing facilities, NEXTDC said it expects pro forma liquidity of approximately AUD 5.9 billion, providing capacity to accelerate development and meet near-term delivery requirements.
The capital will be directed towards expanding capacity aligned to its contracted order book, particularly at its S4 facility in Western Sydney, where demand has accelerated. “The scale of this increase in contracted utilisation and the resulting uplift in the company’s forward order book are unprecedented,” said Craig Scroggie, chief executive officer and managing director of NEXTDC.
S4 expansion drives capex increase
The surge in contracted demand has prompted NEXTDC to bring forward development timelines at S4, with the company planning to invest approximately AUD 1.5 billion into the project through to the end of FY27.
As a result, FY26 capital expenditure guidance has been increased by AUD 300 million to a range of AUD 2.7 billion to AUD 3.0 billion, with elevated spending expected to continue into FY27, where capex is forecast to reach around AUD 5.0 billion. The company said the acceleration reflects a customer-led requirement to deliver capacity more quickly, particularly for hyperscale and AI workloads.
NEXTDC also indicated it is evaluating potential joint venture structures for its Western Sydney developments, including S4 and S7, as projects are de-risked and positioned for future private capital participation.
The company said its contracted utilisation and forward order book are expected to convert into billing utilisation, revenue, and EBITDA between FY26 and FY30, with contracted EBITDA estimated to exceed AUD 1 billion based on existing agreements.