NEXTDC has bought land to build its seventh data centre in the Sydney market. And boy will it be big!
NEXTDC’s Mega Sydney Expansion: Big Data, Big Bucks!
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The News:
NEXTDC Limited (ASX: NXT) has just made a big move. They’re splashing A$353 million to buy land for a new data centre site in Eastern Creek, west of Sydney. And they’re calling it S7 – sounds techy, right?
But here’s the kicker – this isn’t just any patch of land. It’s 258,000 square metres of prime real estate, close to an electricity substation (you’ll need serious power for data centres) and all the right utilities. They’re building right in the heart of the digital economy’s sweet spot!
Why It Matters:
What is S7?
Think of it like building a digital fortress: NEXTDC’s new site will house mission-critical operations, admin offices, and collaboration spaces – essentially, everything a business needs to thrive in a data-first world.
How much power?
This place is designed to deliver 550MW of capacity! That’s a lot of juice – enough to keep the data flowing for global cloud providers and enterprise giants.
The Investment Angle:
NEXTDC is spreading out the payments for this land across FY25 (the 2025 financial year), so no big hits to their bottom line all at once. Here’s where it gets interesting:
No Surprises in the Books: They’re not including these land costs in their FY25 EBITDA guidance, which means investors won’t see it mess with profit estimates just yet.
CapEx Still on Track: Despite the purchase, the company’s capital expenditure (CapEx) guidance holds steady between A$1.3 billion and A$1.5 billion for FY25. No belt-tightening here!
Who Is NEXTDC?
If you’re wondering what NEXTDC actually does – they’re the heroes building Data Centre-as-a-Service (DCaaS) platforms. In plain terms, they provide the infrastructure to power the digital economy. That means they ensure cloud providers, enterprises, and governments stay connected, secure, and always online.
