Listing on the ASX in December 2010, NEXTDC (ASX:NXT) has built itself into an ASX top 100 company and is Australia’s number 1 and only independent data centre provider. They operate a nationwide network of 13 datacentres with 6 located in NSW, 3 in VIC and 2 each in QLD and WA. With plans to expand further at home, in Asia Pacific, New Zealand, Malaysia, and Japan.
Sources: NXT Entitlement Offer Presentation 11th April 2024
NXT’s business model comprises of designing, building, running, and expanding state of the art data centres and then offering the data centre storage and capabilities to Global Public Cloud Providers, Large IT Service Providers, Technology Advisory Firms, Telco’s, and Specialist Cloud and Managed Service Providers.
NXT derives its revenues from numerous product sources such as white space (including power recharge), rack ready services, establishment service fees and add-on services. Their client list contains some of the biggest names in IT and among other names comprises of Microsoft, Amazon, Google, IBM, Alibaba, NEC, Data#3, Accenture, Deloitte, Optus, Telstra, TPG, Vocus, Aussie Broadband, Starlink, and Superloop.
On a side note, many of NXT’s clients are either some of the largest listed companies globally on overseas stock exchanges or listed on our ASX.
Sources: NXT Entitlement Offer Presentation 11th April 2024
As you can imagine, running an infrastructure/services business like this comes with a large capital hungry price tag. With evidence of this in April 2024, when NXT raised $1.3bn via a non-renounceable entitlement offer. Furthermore, as of 31st December 2023, NXT indicated they had a $2.9bn debt facility available, with the majority of the facility undrawn.
NXT has also given forward guidance for capex to be between $850-900m for FY24. All this will help NXT with their expansion plans, as currently, NXT have 6 data centres in development, 3 in planning and 1 under evaluation.
Sources: NXT Entitlement Offer Presentation 11th April 2024
To put all this into perspective, NXT (at the time…
