Key Highlights

  • Data-centre services Revenue increased 16% to AUD 405mn.
  • Contracted utilisation reached 740.1MW at the end of FY26.
  • Billing utilisation increased 58% to 175MW.
  • NEXTDC expects FY27 net revenue of AUD 615mn to AUD 640mn.

NEXTDC ended FY26 with far more capacity contracted than currently generating revenue. NEXTDC (ASX:NXT) reported 740.1MW of contracted utilisation against 175MW of billing utilisation, creating a sizeable delivery schedule across Australia and Asia. Its FY27 plan requires the company to build facilities, connect power and commission capacity while funding a Capital program exceeding AUD 5bn.

Company Business

NEXTDC develops and operates carrier-neutral colocation data centres. Customers include enterprises, governments, cloud providers and operators of high-density computing workloads. Revenue comes from space, power, connectivity and interconnection services.

Contracts can be signed before a Facility or capacity stage is ready, producing a gap between contracted utilisation and the megawatts currently billed.

Sector Context

NEXTDC released its FY26 results in late August 2026. Data centre services revenue of AUD 405.0mn was up 16% year on year and ahead of the company's AUD 390-400mn guidance range. Underlying EBITDA of AUD 248.8mn rose 15%.

Statutory profit after tax of AUD 82.1mn compared with a loss of AUD 60.5mn in FY2025. Contracted utilisation grew by 495.3MW during the year to 740.1MW, and the forward order book stood at 565.1MW, all of it contracted. Billing utilisation increased 58% to 175.0MW.

Built capacity grew 38% to 287.9MW during FY26, with a further 537MW under construction and a land bank capable of supporting more than 3,000MW over time. Capital Expenditure for the year was approximately AUD 3,397mn. The Balance Sheet was reported with net Debt of AUD 751mn, gearing of about 11%, cash of AUD 876mn and pro forma Liquidity of roughly AUD 8.7bn, with no debt maturities until December 2029.

Among the projects advancing are M3 in Melbourne, where 42MW has been delivered and 165MW is under construction, S4 in Sydney, KL1 in Kuala Lumpur with 10MW operational, and TK1 in Tokyo. The company lifted its contracted position materially through the year while keeping gearing low, a combination that reflects both higher customer Demand and the amount of undrawn capacity sitting behind the current build programme.

Risks to Consider

A development programme of this scale depends on grid connections, construction labour, equipment Supply and planning approvals, any of which can push timetables. Customer concentration is a feature of hyperscale contracting. The capital requirement implies continued reliance on debt and Equity markets, and financing conditions can change.

Should demand for AI-related capacity moderate, the gap between contracted and billing utilisation would take longer to close than current plans assume.

What to Watch Next

FY27 guidance is the immediate benchmark: net revenue of AUD 615-640mn, underlying EBITDA of AUD 385-410mn and capital expenditure of AUD 5,250-5,750mn. That capex step-up is substantial and its funding mix could remain in focus. Beyond the guidance, the rate at which contracted megawatts convert to billing megawatts, further contract wins from hyperscale and AI customers, construction timetables at M3 and S4, and the ramp of the Asian sites are all identifiable markers through the year.

NEXTDC's FY26 delivered revenue above its own guidance, a statutory profit and a contracted book that more than doubled. What could drive the next move is less about the year just reported and more about execution: turning 740.1MW of contracts into billed capacity while spending up to AUD 5.75bn in FY27. Investors may be watching construction milestones and funding announcements as closely as the revenue line itself.