The ASX-listed data centre operator is securing A$1.5 billion through a fully underwritten equity offering and increasing its hybrid securities programme by A$700 million, with La Caisse de dépôt et placement du Québec committing to a total of A$1.7 billion.
This funding will support accelerated development of the S4 Western Sydney campus, where contracted utilisation surged by 250 megawatts in one quarter.
NEXTDC (ASX: NXT), Australia’s largest independent data centre operator, announced a A$2.2 billion capital plan, featuring a fully underwritten A$1.5 billion equity entitlement offer. Trading was paused for the announcement on Monday.
This initiative arises from an increase in demand: between December 2025 and 31 March 2026, NEXTDC reported a 60% rise in pro forma contracted utilisation, amounting to 667MW.
During the same period, forward orders grew by 83% to 544MW, driven by hyperscale cloud providers and AI infrastructure clients.
The equity offer is a 1-for-5.4 pro-rata accelerated non-renounceable entitlement offer, priced at A$12.70 per share, representing an 8.6% discount to the theoretical ex-rights price of A$13.90.
Retail shareholders are set to receive new shares by 18 May, while the institutional bookbuild was already in progress at the trading halt. Prior to suspension, NEXTDC shares had increased approximately 25% through April, amid growing investor interest in data centre infrastructure in the Asia-Pacific.
The total A$2.2 billion capital plan includes the A$1.5 billion equity offering and a A$700 million expansion of the hybrid securities programme.
NEXTDC’s hybrid securities, which rank junior to all existing debt, initially had a A$1 billion binding commitment from La Caisse de dépôt et placement du Québec (CDPQ), Canada’s second-largest pension fund.
The increased commitment elevates La Caisse’s total backing to A$1.7 billion, establishing a “promising first step toward a long-term partnership” with NEXTDC, according to the Canadian investor.
The funds raised will primarily be used for the accelerated development of S4, NEXTDC’s data centre campus in Western Sydney, with plans to invest around A$1.5 billion by financial year 2027.
A 250MW customer commitment at S4 during the recent quarter prompted the announcement: CEO Craig Scroggie noted the capital raise as a method to “materially expand NEXTDC’s contracted capacity and de-risk the company’s Western Sydney developments ahead of potential strategic partnership transactions with private capital partners from 2027.”
This indicates the intention to involve joint venture partners or asset-level investors once the facility is contracted and de-risked, a typical monetisation strategy for large data centre projects.
NEXTDC’s financial guidance highlights that they have raised their FY26 capital expenditure guidance by A$300 million to A$2.7 billion to A$3.0 billion.
The forecast for FY27’s capex is approximately A$5.0 billion. The company is upholding its existing FY26 revenue and EBITDA projections and estimates that contracted EBITDA from current customer deals will eventually exceed A$1 billion, roughly four times the midpoint of the current FY26 guidance of A$235 million.
Post-raise and recent funding actions, NEXTDC anticipates pro forma liquidity of roughly A$5.9 billion.
NEXTDC manages or is building 20 data centres across Australia, in cities such as Sydney, Melbourne, Brisbane, Perth, and others, and is considering locations in Tokyo, Bangkok, Johor and Kuala Lumpur in Malaysia, and Singapore.
Australia’s available data centre capacity is about 1,350 megawatts today, with predictions estimating 3,100 MW by 2030–31, potentially reaching 7.4 gigawatts by 2035 under AI-driven scenarios.
NSW has approved A$51.9 billion in data centre projects through its Investment Delivery Authority, centralising approvals, and providing grid connections and planning support to a select group of qualified operators.