Key Highlights

  • Contracted utilisation rose 202% to 740.1 megawatts, the largest contracting year in the company's history.
  • Total Revenue rose 16% to A$496.5 million, and underlying EBITDA rose 15% to A$248.8 million.
  • Statutory net profit after tax was A$82.1 million, compared with a loss of A$60.5 million a year earlier.
  • FY27 Capital works are planned at A$5.25 billion to A$5.75 billion, with Liquidity of A$8.7 billion.

Why is NEXTDC Limited (ASX:NXT) planning to spend between A$5.25 billion and A$5.75 billion on capital works in FY27 when it is still earning modest profits? In its FY26 results on 27 August 2026, the data centre operator reported that contracted utilisation had risen 202% to 740.1 megawatts, describing FY26 as the largest contracting year in its history. The company is building capacity ahead of when customers' contracted Demand converts to billing, which makes execution and funding the central story.

The FY26 result

Underlying EBITDA rose 15% to A$248.8 million, also above guidance. Statutory net profit after tax was A$82.1 million, compared with a A$60.5 million loss a year earlier. Contracted utilisation was 740.1 MW, and the Forward Order Book, which counts contracted capacity not yet billing, was 565.1 MW at year end, about 3.2 times billing utilisation.

Capex was a record A$3.4 billion (A$3,397 million), about A$397 million above the top of guidance, driven by land purchases and accelerated construction. The company added 80 MW of capacity during FY26. Pro forma liquidity rose 58% to A$8.7 billion from A$5.5 billion after NEXTDC raised A$9.75 billion of new capital since August 2025.

FY27 guidance

It expects 197 MW of contracted capacity to convert to billing during FY27 and a further 221 MW in FY28. These are guidance figures and depend on construction timelines, customer ramp schedules and power availability.

How the Business works

NEXTDC owns and operates data centres in Australian capital cities, leasing space, power and cooling to enterprises, cloud providers, government and, increasingly, artificial intelligence workloads. Revenue is driven by the amount of power capacity contracted and billed, plus interconnection services that link customers to each other and to cloud platforms. Because buildings and power infrastructure must be completed before customers move in, there is a lag between contract signing and revenue. That lag explains why contracted utilisation can jump while revenue grows at a slower pace.

Why the gap between contracts and billing matters

A Forward Order Book of 565.1 MW against a billing base roughly a third of that size means most of the near-term growth is contracted. The company also said 197 MW is expected to convert in FY27 and 221 MW in FY28, so Earnings growth depends on completing and commissioning the buildings in time. Delays or cost overruns could push revenue out or raise costs. Conversion is also not the same as profit: new capacity carries depreciation, power costs and interest on the capital used to build it.

Funding and balance sheet

The A$9.75 billion of capital raised since August 2025 and A$8.7 billion of pro forma liquidity give NEXTDC room to fund its build program. The trade-off is larger financing costs and, where Equity was issued, a larger share count. Capex guidance of up to A$5.75 billion in FY27 against underlying EBITDA guidance of up to A$410 million shows how far Investment is running ahead of earnings.

Sector and competitive position

Australian data centre demand is being driven by cloud adoption and artificial intelligence, and the market includes global operators and local competitors. The company said its portfolio and Forward Order Book are unaffected by proposed state and national energy regulation reforms, though that is management's view and policy settings may change. Customer concentration among large cloud and AI users can also give those customers bargaining power on pricing and terms.

Risks to monitor

Construction delays, cost Inflation or equipment shortages that slow conversion of contracted capacity into billing.

Funding and interest cost risk given capex of A$5.25 billion to A$5.75 billion in FY27.

Power availability and cost, and changes in energy regulation.

Customer concentration among large technology firms and potential contract changes.

Technology shifts in artificial intelligence that could change the type of capacity customers need.

Competition from other data centre developers.

What to watch next

Investors will follow construction progress at the major campuses, quarterly updates on contracted utilisation and the Forward Order Book, and the first-half FY27 result, which on past timing would fall around February 2027. Announcements of further contracts, capital raisings or changes to guidance would be material.

Bottom line

NEXTDC's FY26 report shows record contracting, above-guidance earnings and a very large funding position, alongside heavy spending that will take years to convert into revenue. The company's earnings growth guidance for FY27 is encouraging, but so is the execution risk attached to the build program.