Highlights

  • NEXTDC agreed an MoU with OpenAI to develop a sovereign AI infrastructure campus at S7 site in Eastern Creek, Sydney.
  • Contracted utilisation increased 29% to 316 MW, with a 53% rise in the forward order book to 205 MW since mid-2025.
  • FY26 capital expenditure guidance was increased by AUD 400 million, now ranging between AUD 2.2 billion and AUD 2.4 billion, supporting accelerated capacity expansion.

Shares of NEXTDC Limited (ASX:NXT) gained over 7% to trade at AUD 14.47 per share on 5 December 2025 morning, reflecting positive momentum following significant customer contract wins and an announced partnership with OpenAI. The two companies have agreed to develop a sovereign AI infrastructure initiative at NEXTDC’s S7 site in Eastern Creek, Sydney as part of the OpenAI for Australia program. NEXTDC’s updated capital expenditure guidance underscores its commitment to expanding capacity to meet rising demand.

OpenAI Partnership to Develop Hyperscale AI Campus

NEXTDC signed a Memorandum of Understanding (“MoU”) with OpenAI to jointly plan, develop, and operate a next-generation hyperscale AI campus and GPU supercluster at NEXTDC’s Eastern Creek S7 site. This collaboration aims to establish a sovereign AI infrastructure partnership that supports Australia’s growing artificial intelligence ecosystem under the OpenAI for Australia initiative.

NEXTDC’s Market Position and Sustainability Leadership

NEXTDC is part of the ASX 100 and is regarded as Asia’s leading Data Centre-as-a-Service provider. Its facilities deliver crucial infrastructure supporting global cloud providers, enterprises, and government with dependable power, security, and connectivity. The company stands out for operating Australia’s only network of Uptime Institute certified Tier IV data centres, and uniquely holds Tier IV Gold certification for Operational Sustainability in the Southern Hemisphere. NEXTDC emphasizes sustainability through the use of renewable energy and high operational efficiency, boasting NABERS 5-star energy efficiency ratings. It is also certified carbon neutral under the Australian Government’s Climate Active Carbon Neutral Standard. NEXTDC hosts a leading Cloud Centre partner ecosystem, forming Australia’s most dynamic digital marketplace connecting carriers, cloud providers, and IT service vendors.

Contracted Utilisation and Capex Growth

On 1 December 2025, NEXTDC announced a pro forma increase in contracted utilisation by 71 MW (29%) to 316 MW since 30 June 2025. The forward order book also grew by 53% to 205 MW, anticipated to convert to billings and revenue between FY26 and FY29.

To support this expansion, NEXTDC revised its FY26 capital expenditure guidance, increasing it by AUD 400 million to a range of AUD 2,200 million to AUD 2,400 million (previously AUD 1,800 million to AUD 2,000 million). This additional capex is allocated to accelerate inventory expansion and deploy capacity for new contracts. The company’s FY26 net revenue and underlying EBITDA targets remain unchanged.