NEXTDC Limited (ASX:NXT) reported its largest contracting year to date in FY2026 as Demand from cloud, artificial intelligence and hyperscale customers increased the amount of capacity committed across its data-centre portfolio.

At 30 June 2026, billing utilisation stood at 175.0 megawatts (MW), while pro forma contracted utilisation reached 740.1 MW. The resulting 565.1 MW forward order book represents binding customer commitments expected to progressively convert into billing through FY2030. (

FY2026 Results

NEXTDC reported net Revenue of AUD 405.0 million for FY2026, an increase of 16% from AUD 350.2 million in FY2025.

Underlying EBITDA increased 15% to AUD 248.8 million from AUD 216.7 million.

Both measures finished above the company's FY2026 guidance ranges of AUD 390–400 million for net revenue and AUD 230–240 million for underlying EBITDA.

Statutory net profit after tax was AUD 82.1 million, compared with a loss of AUD 60.5 million in FY2025.

The statutory result requires some additional context. NEXTDC adopted investment-property accounting for certain hyperscale Assets during FY2026, including M3 Melbourne and S4 Sydney. A AUD 128.8 million non-cash fair-value gain contributed to reported profit. On the historical accounting basis used previously, the company said FY2026 would have produced an unaudited net loss after tax of AUD 103.9 million.

Contracted Capacity

Pro forma contracted utilisation increased 202% during FY2026 to 740.1 MW.

Billing utilisation increased 58% to 175.0 MW, while built capacity rose 38% to 287.9 MW.

The difference between contracted and billing utilisation resulted in a forward order book of 565.1 MW, up from 133.9 MW at the end of FY2025. NEXTDC states that every megawatt included in this forward order book represents a binding customer contract rather than an option, reservation or sales pipeline opportunity. (NEXTDC)

NEXTDC expects 197 MW of the forward order book to convert to billing during FY2027, followed by a further 221 MW in FY2028. Another 147 MW is expected to convert across FY2029 and FY2030.

Cloud and AI Demand

Cloud and AI customers accounted for approximately 95% of NEXTDC's contracted MW at 30 June 2026.

Higher-density deployments are also changing the composition of NEXTDC's infrastructure. More than 70% of billing capacity was associated with hyperscale customers during FY2026.

Annualised revenue per MW declined to approximately AUD 3.9 million from AUD 4.3 million in FY2025 as larger hyperscale deployments increased their share of the portfolio.

NEXTDC said the higher power volumes and more efficient infrastructure associated with these developments mean new hyperscale projects are targeting yields on cost above 10%. (

Development Program

NEXTDC had 537 MW of capacity under development at the end of FY2026.

The largest individual project is S4 Sydney at Horsley Park. Its planned capacity has been increased to 365 MW, comprising 250 MW in progress and a further 115 MW in planning.

In Victoria, 60 MW was in progress at M2 Melbourne and 165 MW at M3 Melbourne. Early works were also underway for M4 Melbourne, while the newly acquired M5 Melbourne site is being designed and planned with targeted capacity of up to 1.2 GW.

Internationally, KL1 Kuala Lumpur opened to its foundation customer in May 2026. A further 15 MW was under development there, with another 15 MW in planning. Construction works were also underway at TK1 Tokyo.

Across NEXTDC's broader portfolio, total potential IT power was approximately 3,030 MW at 30 June 2026, including operational facilities, developments under construction, approved projects and land-bank capacity.

Capital Expenditure

The capacity expansion requires substantial capital investment.

NEXTDC spent AUD 3.397 billion on Capital Expenditure during FY2026, double the AUD 1.699 billion spent in FY2025.

The amount was above the company's revised FY2026 guidance range of AUD 2.7–3.0 billion. NEXTDC attributed the difference to accelerated construction associated with contracted customer delivery dates as well as the timing of land acquisitions and development payments.

For FY2027, capital expenditure is expected to increase to between AUD 5.25 billion and AUD 5.75 billion. This includes up to AUD 500 million of customer-reimbursable fit-out expenditure.

Funding Position

NEXTDC put in place approximately AUD 9.75 billion of new capital commitments from August 2025 through its FY2026 results period.

This comprised senior Debt facilities, subordinated notes, hybrid securities and AUD 1.5 billion of equity.

Pro forma available Liquidity stood at approximately AUD 8.7 billion, including AUD 876 million in cash and substantial undrawn financing facilities.

Reported gearing was 11% at 30 June 2026, compared with 19% a year earlier. NEXTDC reported net debt of AUD 751 million under its stated gearing methodology, which excludes subordinated capital.

Power and Connections

Electricity availability and network connections form an important part of NEXTDC's development program because large-scale data centres require substantial power capacity.

NEXTDC said power arrangements are in place across its contracted capacity and continue to progress through defined stages as individual developments move toward delivery.

The company also confirmed that its existing operating portfolio and 565 MW forward order book are unaffected by proposed energy-market reforms being considered in New South Wales and nationally.

For S4 Sydney specifically, NEXTDC said it had received written confirmation that Transgrid's new capacity-allocation policy does not apply to the project. (NEXTDC)

FY2027 Guidance

NEXTDC expects FY2027 net revenue of between AUD 615 million and AUD 640 million, representing growth of 52% to 58% from FY2026.

Underlying EBITDA is forecast at AUD 385 million to AUD 410 million, representing an increase of 55% to 65%.

The guidance assumes 197 MW of contracted capacity converts to billing during FY2027.

NEXTDC therefore enters FY2027 with a substantially larger contracted capacity base, 537 MW of infrastructure under development and its largest annual capital-expenditure program to date.

The timing of construction, commissioning and contracted capacity moving into billing will determine how the company's 565.1 MW forward order book is reflected in future revenue and earnings.