NextDC, the Brisbane-based data centre developer and operator, has revealed plans to invest approximately $900 million this year to support the growing demand for cloud computing and prepare for the impending wave of artificial intelligence (AI). The company reported a 25% increase in revenues to $362.4 million for the 12 months ending June 30, along with a net loss of $25.6 million compared to a $9.1 million profit the previous year.
NextDC CEO Craig Scroggie emphasized the importance of accommodating the surge in AI adoption, stating that it would generate “extraordinary growth” for the company. The investment will primarily be directed towards expanding the 13 existing data centres and developing nine more centres. Major customers like Google, Microsoft, and Amazon, as well as regional growth in the Sunshine Coast, Darwin, and Adelaide, are driving the need for increased digital infrastructure.
“Aside from the growth of cloud computing, the emergence of AI is poised to be a game-changer in terms of digital infrastructure requirements,” said Scroggie. While the company’s forecasts have not accounted for the infrastructure demands of generative AI, NextDC is already collaborating with customers to plan for the future.
The market has recognized NextDC’s potential, with shares surging by 47% this year. The company is predicted to benefit from the escalating demand for computing power and data storage necessary to handle AI workloads.
With revenue projections for the current financial year ranging from $400 million to $415 million, NextDC anticipates an increase in margins in the second half as contracted price hikes have an impact and power costs decrease. The company expects underlying EBITDA to fall within the range of $190 million to $200 million while Australian facility costs are estimated to rise to $12 million to $16 million, driven by staff expansion and investments in land properties for future expansion.
FAQs:
Q: What is NextDC?
A: NextDC is a data centre developer and operator based in Brisbane.
Q: How much will NextDC invest this year?
A: NextDC plans to invest approximately $900 million this financial year.
Q: What is driving the need for increased digital infrastructure?
A: The growing customer demand for cloud computing, as well as the upcoming wave of artificial intelligence, is driving the need for increased digital infrastructure.
Q: Which major customers are contributing to the demand for cloud computing?
A: Major customers like Google, Microsoft, and Amazon are contributing to the demand for cloud computing.
Q: How much have NextDC’s shares risen this year?
A: NextDC’s shares have risen by 47% this year.