NEXTDC Reports 42% Jump in Contracted Utilisation and $216.7m EBITDA

Robust Financial Performance

NEXTDC Limited, Australia’s leading digital infrastructure provider, showcased strong momentum at its FY25 Annual General Meeting. The company reported a 14% increase in net revenue to A$350.2 million, surpassing guidance and reflecting sustained demand for its data centre services. Underlying EBITDA also rose by 6% to A$216.7 million, underscoring operational efficiency amid expanding scale.

Contracted utilisation, a key metric indicating committed data centre capacity, jumped 42% year-on-year to 244.8MW. This surge was supported by a record forward order book of 134MW, which NEXTDC expects to convert into billings and earnings predominantly by FY27, with the remainder by FY29. Billing utilisation itself increased 29% to 110.9MW, demonstrating solid revenue conversion from contracted commitments.

Strategic Expansion and AI Focus

Capitalising on the accelerating AI infrastructure market, NEXTDC is advancing multiple data centre expansions. Notably, the M3 facility’s power capacity is being upgraded by 50MW to 200MW to support high-density AI workloads with innovative liquid direct-to-chip cooling technology. Additional upgrades at M4 and S5 sites will add 70MW and 20MW respectively, enhancing the company’s ability to meet growing enterprise and hyperscale demand.

Further afield, NEXTDC is progressing hyperscale developments including the KL1 data centre in Kuala Lumpur, targeting a 65MW capacity with a Green Building Index Platinum rating, and the TK1 site near Tokyo Tower, planned for completion by FY30. These projects reflect NEXTDC’s strategic commitment to expanding its footprint across the Asia-Pacific region and tapping into burgeoning digital economy opportunities.

Strengthened Balance Sheet and Funding Flexibility

To underpin its growth ambitions, NEXTDC has significantly increased its debt facilities to A$6.4 billion, with approximately 80% structured as revolving credit lines. This provides ample liquidity and financial flexibility, with no debt maturities until December 2029. The company’s weighted average cost of debt improved to 5.3%, down from 6.2% the previous year, reflecting favourable market conditions and credit standing.

Importantly, NEXTDC is no longer subject to leverage ratio covenants, with only gearing and interest cover ratios applying. The inclusion of contracted but not yet billed revenues in EBITDA calculations further enhances covenant headroom, supporting the company’s capacity to fund ongoing and future developments.

Governance and Sustainability Initiatives

The AGM also marked governance updates with the election of two new non-executive directors, Deborah Page AM and Jamaludin Ibrahim, strengthening board diversity and expertise. NEXTDC continues to lead on environmental, social, and governance (ESG) fronts, embedding circular economy principles in construction, achieving carbon-neutral certification, and maintaining industry-leading safety standards.

Its sustainability credentials are bolstered by certifications such as NABERS 5-star ratings and TRUE Zero Waste certification, alongside active programs to promote diversity, equity, and inclusion within its workforce. These efforts align with NEXTDC’s broader mission to deliver trusted, sovereign, and scalable digital infrastructure that supports unstoppable progress in the digital economy.

Looking Ahead

With a robust financial foundation, accelerated capacity expansions, and a clear strategic focus on AI-driven infrastructure, NEXTDC is well positioned to capitalise on the anticipated multi-trillion-dollar AI infrastructure spend forecast over the coming decade. The company’s forward order book and development pipeline signal a step-change in future billings and earnings, setting the stage for sustained growth in a rapidly evolving market.