Australian data centre operator Nextdc [ASX:NXT] saw its share price rocketing almost 9% Wednesday afternoon after announcing new customer wins have increased demand at the group’s Sydney data centres.
The company’s contracted production has increased by 35.9MW (43%) to 120MW since 31 December 2022.
NXT said that the new S3 data centre has benefited the most from the recent customer contract wins and is now at 46% of total planned capacity.
The stock was trading for $12.10 by early afternoon, thanks to its boost of 8.86% just after lunch time.
NXT’s share price has been hitting the green on all accounts, having risen 33% so far in 2023 and more than 18% in the last month alone.
By Wednesday afternoon, the tech stock was 10.5% up on the market average and up 20% in its sector:
www.TradingView.com
Nextdc posts new customer wins and delights investors
Nextdc shares were charging higher — nearly up 9% — earlier today, upping the share’s value to $12.10 apiece in early afternoon trade.
The share price surge came after the data centre operator revealed that it’s achieved new customer wins, which have boosted demand at its Sydney data centres.
The group, which is a technology company and innovative data centre-as-a-service provider working to build the infrastructure platform for the digital economy, has advised that thanks to its most recent customer wins, the company’s contracted utilisation has increased by 35.9MW (43%) to 120MW since the end of December.
The contracted utilisation in question consists of megawatts (MW) and doesn’t necessarily include contractual expansion options and reservation commitments to customers.
It has been found that Nextdc’s new S3 data centre has benefited the most from the recent customer contract wins, with the centre now at 46% of its initial total planned capacity.
At its recent 1H23 results, the company expressed that it had anticipated the successful sale of capacity at S3 by securing expansion land in the Macquarie Park, which was in the availability zone for S5 Sydney.
‘Subject to development approval, S5 is expected to accommodate target IT capacity of 60MW+ once built,’ the company stated in its announcement today.
Nextdc says that it expects revenue for the majority of the new customer contract wins to become progressively recognised from late fiscal 2024 through to fiscal 2029, which will follow the completion and commissioning of extra data halls during that time.
Craig Scroggie, Nextdc’s CEO and Managing Director, provided the following comments:
‘It is very pleasing for the Company to have secured this record level of incremental customer contract wins. Having done significant work over recent years to deliver UI certified Tier IV metropolitan hyperscale data centres in S3, M2 and M3, the Company is very well positioned to continue to take advantage of further customer growth across these critical digital infrastructure assets.’
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For The Daily Reckoning
