NEXTDC Limited (ASX:NXT): FY26 Data Centre Expansion, Contracted Capacity and FY27 Guidance

Aditi Sarkar

23 October 2026 12:29 AM AEDT

NEXTDC Limited (ASX:NXT): FY26 Data Centre Expansion, Contracted Capacity and FY27 Guidance

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Highlights

NEXTDC Limited (ASX:NXT) reported FY26 net revenue of AUD 405.0 million, up 16%.
Underlying EBITDA increased 15% to AUD 248.8 million for the year ended June 2026.
Pro forma contracted utilisation reached 740.1MW, while the forward order book stood at 565.1MW.
FY27 guidance targets net revenue of AUD 615–640 million and capital expenditure of AUD 5.25–5.75 billion.

NEXTDC Limited (ASX:NXT) develops and operates data centres that supply secure computing space, power and connectivity to cloud providers, enterprises and government customers. Its August 2026 full-year results showed a marked increase in contracted capacity alongside higher revenue, earnings and construction expenditure. Shares of NEXTDC Limited (ASX:NXT) closed at AUD 5.61 on 23 October 2026, down 2.43% for the session.

Company Business

NEXTDC Limited (ASX:NXT) provides data-centre colocation, interconnection services, private computing suites and facilities for high-density workloads. Its Australian network spans major metropolitan markets including Sydney, Melbourne, Brisbane and Perth, with facilities and developments also covering other regional locations. The business supplies infrastructure rather than operating the software applications hosted inside its buildings. Customers contract for capacity and begin paying as commissioned space becomes available for use.

International development includes the KL1 facility in Kuala Lumpur and early-stage work in other Asia-Pacific markets. NEXTDC also provides liquid-cooling capability and network interconnections used by customers with cloud and artificial-intelligence computing requirements. Its growth depends on converting signed capacity commitments into completed facilities and recurring billings.

Recent Development

In August 2026, NEXTDC Limited (ASX:NXT) reported pro forma contracted utilisation of 740.1 megawatts, an increase of 495.3MW, or 202%, from the prior corresponding measure. The 565.1MW forward order book represented capacity subject to binding commitments but not yet included in billing utilisation. It excludes non-binding options, reservations and sales prospects; consequently, its conversion depends on facility delivery and contract commencement schedules.

Built capacity reached 287.9MW at 30 June 2026, rising 80.0MW over the year. Commissioned additions included capacity at S3 Sydney, M2 and M3 Melbourne and KL1 Kuala Lumpur. The company also advanced development at S4 Sydney and announced acquisition of land for M5 Melbourne. These projects require long construction lead times and substantial expenditure before associated customer billings reach their intended level.

Financial Performance and Sector Context

For FY26, NEXTDC Limited (ASX:NXT) reported total revenue of AUD 496.5 million, up 16%, while net revenue after direct costs increased by the same percentage to AUD 405.0 million. Underlying EBITDA rose 15% to AUD 248.8 million from AUD 216.7 million. Billing utilisation increased 58% to 175.0MW, indicating that a larger quantity of commissioned capacity had begun generating customer charges.

Statutory net profit after tax was AUD 82.1 million, against a loss of AUD 60.5 million a year earlier. That result included a fair-value gain related to investment-property accounting, so it should not be interpreted as equivalent to recurring data-centre operating earnings. FY26 capital expenditure reached AUD 3.397 billion, above the revised AUD 2.7–3.0 billion guidance range, reflecting accelerated construction and land payments. The company reported pro forma available liquidity of AUD 8.676 billion, including cash and committed financing facilities.

Power availability, grid connections, equipment lead times and the pace at which customers commission computing installations influence the data-centre sector. Demand associated with cloud systems and AI workloads can support capacity contracting, but customer commitments do not eliminate the financing and delivery costs incurred before facilities become billable.

Risks to Consider

NEXTDC Limited (ASX:NXT) faces execution risk from simultaneous construction projects and the need to coordinate customer installation schedules, electricity connections and equipment delivery. The scale of forecast capital expenditure increases dependence on available debt, hybrid capital and operating cash flow. Energy price changes, connection requirements, permitting delays and policy revisions may also affect development economics. Differences between underlying earnings, statutory fair-value gains and cash generation require careful interpretation.

What to Watch Next

The company’s FY27 guidance, issued with its August results, forecasts net revenue of AUD 615–640 million and underlying EBITDA of AUD 385–410 million on a constant-currency basis. It expects 197MW of forward-order-book capacity to convert to billing in FY27 and a further 221MW in FY28. Planned FY27 expenditure of AUD 5.25–5.75 billion makes construction progress and funding deployment important operating measures. Subsequent disclosures should clarify the timing of commissioning, changes to contracted utilisation and actual customer billings.

Key Insights

FY26 combined higher net revenue and underlying EBITDA with a substantial increase in contracted but not yet billing capacity. NEXTDC Limited (ASX:NXT) is committing significant capital to bring that capacity into service, while its statutory profit also reflects property valuation accounting. Delivery milestones, the conversion of binding orders into billings, financing utilisation and FY27 spending against guidance remain central to interpreting future reports.

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