NEXTDC Limited (ASX: NXT) has posted record results for the first half of FY25, with net revenue climbing 13% to $167.8 million and underlying EBITDA rising 3% to $105.4 million. The data centre giant continues to capitalise on the increasing demand for cloud services, AI infrastructure, and enterprise digital transformation, reinforcing its position as a key player in the hyperscale and enterprise data centre market.
Despite a slight decline in total revenue due to one-off factors, NEXTDC’s growth trajectory remains intact, underpinned by an 18% increase in contracted utilisation to 176.0MW. With a forward order book of 83.0MW set to ramp up billing through FY25 to FY29, the company has a solid foundation for sustained earnings growth.
Expanding Footprint to Meet Surging Demand
NEXTDC invested a record $1.003 billion in capital projects during the half, significantly outpacing the $220 million spent in 1H24. This includes the $353 million purchase of land for the development of S7 in Western Sydney, which is planned to be a 550MW facility.
Additional development highlights include:
- Sydney: S3 added 16MW of built capacity, with 24MW under construction and 12MW in planning.
- Melbourne: M2 added 6MW, with 18MW in progress and 20MW+ planned. Expansion at M3 is underway with 13.5MW progressing and 50MW+ planned.
- Brisbane & Perth: B2 added 2MW, with expansion plans nearing completion at both B2 and P1.
- New Openings: A1 Adelaide, D1 Darwin, and S6 Sydney officially opened.
- International Expansion: Construction has begun at KL1 Kuala Lumpur (10MW in progress, 10MW planned), with AK1 Auckland in planning and further data centre locations identified across Asia.
Financial Strength and FY25 Outlook
NEXTDC ended the half with a robust liquidity position of $2.5 billion, consisting of $373 million in cash and $2.1 billion in undrawn debt capacity. The company reaffirmed its FY25 guidance, expecting:
- Net revenue between $340 million and $350 million
- Underlying EBITDA between $210 million and $220 million
- Capital expenditure between $1.3 billion and $1.5 billion
NEXTDC CEO Craig Scroggie remains optimistic about the company’s trajectory:
“NEXTDC’s robust first-half performance shows that the Company is firmly on course to achieve its key revenue and underlying EBITDA targets. With continued operational momentum, we expect to deliver another strong operating and financial performance in FY25 and remain well placed to capitalise on growth opportunities and support customers’ expanding needs.”
New Growth Incentive Plan for Leadership
To drive long-term growth and shareholder value, NEXTDC has introduced a one-off Growth Incentive Plan (GIP) for its executive team. Valued at $150 million, the plan aims to align leadership incentives with sustained high performance, requiring an Absolute Total Shareholder Return (TSR) hurdle of at least 17.5% per annum over five years.
As capital investment in data centres accelerates globally, the GIP is designed to ensure NEXTDC remains competitive in attracting and retaining top industry talent.
Positioned for the Future
With record investments, continued expansion, and a growing customer base, NEXTDC is well-positioned to capitalise on the booming demand for digital infrastructure. As businesses increasingly rely on cloud computing and AI-driven solutions, NEXTDC’s world-class facilities and strategic growth initiatives set the stage for continued long-term success.
