Highlights

  • NEXTDC has received positive analyst ratings with price targets ranging between AUD 18.10 and AUD 28.66.
  • E&P issued a positive rating on the stock, while Jefferies and Canaccord Genuity maintained Buy ratings.
  • The ratings might follow recent company updates on contracted utilisation growth and strategic infrastructure partnerships.

NEXTDC Limited (ASX:NXT) has received favourable analyst attention, with multiple brokerage firms reaffirming positive ratings on the data centre operator. E&P issued a positive rating with a target price of AUD 28.66, while Jefferies and Canaccord Genuity maintained Buy ratings with target prices of AUD 18.10 and AUD 22.55, respectively. The analyst views might come amid a period of strategic updates from the company during December 2025.

Contracted Utilisation Update Supports Market Attention

On 22 December 2025, NEXTDC announced a significant increase in its pro forma contracted utilisation. Following additional customer contract wins, contracted utilisation rose by 96 megawatts, representing a 30 per cent increase since the previous update on 1 December 2025. Total pro forma contracted utilisation now stands at 412 megawatts.

The company also reported an increase in its pro forma forward order book to 301 megawatts. This order book is expected to progressively convert into billings, revenue, and EBITDA over the period from FY26 to FY29. NEXTDC confirmed that its FY26 guidance for net revenue, underlying EBITDA, and capital expenditure remains unchanged.

Strategic Infrastructure Partnership with OpenAI

Earlier in December, NEXTDC announced its participation as an infrastructure partner under the OpenAI for Countries program, following the signing of a memorandum of understanding with OpenAI. The agreement positions NEXTDC to collaborate on the planning, development, and operation of a hyperscale AI campus and GPU supercluster at its S7 site in Eastern Creek, Sydney.

The proposed campus is intended to provide sovereign infrastructure for a range of sectors, including enterprise, government, defence, healthcare, education, and research. The S7 hyperscale campus is being developed with engineering specifications aligned to Australia’s Security of Critical Infrastructure framework.

Development Timeline and Infrastructure Scope

The first phase of the S7 hyperscale campus will focus on advanced infrastructure capable of supporting high-density AI workloads. Design elements include closed-loop liquid cooling systems that do not require ongoing potable water for cooling operations. Subject to regulatory approvals, the initial phase of the project is expected to be delivered in the second half of calendar year 2027.