NEXTDC Boosts Contracted Utilisation by 30%, Forward Orders Surge to 301MW
NEXTDC has announced a significant 30% increase in its pro forma contracted utilisation to 412MW, driven by new customer wins, while its forward order book has expanded to 301MW, signaling strong growth prospects.
- Pro forma contracted utilisation rises 96MW to 412MW
- Forward order book increases to 301MW
- Growth driven by recent customer contract wins
- FY26 financial guidance remains unchanged
- Forward order book expected to convert to revenue through FY26–FY29
Contracted Utilisation Growth
ASX-listed data centre specialist NEXTDC Limited has revealed a substantial uplift in its contracted utilisation, which has climbed by 96MW or 30% since early December, reaching a pro forma total of 412MW. This jump reflects a series of new customer contract wins, underscoring the company’s continued appeal in the competitive data centre market.
Forward Order Book Expansion
Alongside this utilisation increase, NEXTDC’s forward order book; the pipeline of contracted but not yet billed capacity; has expanded to 301MW. This metric is critical as it represents future revenue potential, expected to translate into billings, revenue, and EBITDA over the next four fiscal years, from FY26 through FY29. The growth in the order book signals strong demand momentum and a robust sales pipeline.
Financial Guidance and Market Implications
Despite the positive developments in contracted utilisation and forward orders, NEXTDC has maintained its FY26 net revenue, underlying EBITDA, and capital expenditure guidance unchanged. This cautious stance suggests management is balancing optimism with prudence, possibly reflecting the timing of revenue recognition or conservative forecasting amid market uncertainties.
NEXTDC’s Strategic Positioning
As Asia’s leading Data Centre-as-a-Service provider, NEXTDC continues to leverage its reputation for operational excellence and sustainability. Its network of Tier IV certified facilities and commitment to renewable energy sources position it well to meet growing enterprise and government demand for secure, efficient cloud infrastructure. The recent contract wins reinforce NEXTDC’s role as a critical infrastructure partner in the digital economy.
Looking Ahead
Investors will be watching how the forward order book converts into actual revenue and earnings in the coming years, as well as any updates to financial guidance that might reflect the company’s evolving operational scale. NEXTDC’s ability to sustain this growth trajectory will be key to maintaining its market leadership and delivering shareholder value.
Bottom Line?
NEXTDC’s surge in contracted utilisation and forward orders sets the stage for growth, but the market awaits clarity on revenue conversion timing.
Questions in the middle?
- What factors are influencing NEXTDC’s decision to keep FY26 guidance unchanged despite increased utilisation?
- How quickly will the expanded forward order book convert into billed revenue and EBITDA?
- Are there any emerging risks or competitive pressures that could impact NEXTDC’s growth momentum?
