NEXTDC - Contracted Utilisation Update - 6 August 2024
NXT (NXT) Share Update August 2024 Monday 5th
NEXTDC Reports Significant Increase in Contracted Utilisation
NEXTDC Limited (ASX: NXT) has announced a substantial increase in contracted utilisation, driven by recent customer wins, marking a significant milestone for the company.
Instant Summary:
- Contracted utilisation increased by 23.6MW (16%) since 31 December 2023.
- NSW/ACT data centre region now at 20% of total planned capacity.
- Revenue from new customer contracts expected to commence during FY27.
- Forward order book reaches a record level of 86.6MW.
Contracted Utilisation Growth
NEXTDC Limited has reported a notable increase in its contracted utilisation, which has risen by 23.6MW, representing a 16% growth since 31 December 2023. This increase brings the total contracted utilisation to 172.6MW.
The NSW/ACT data centre region has seen the most significant benefit from this growth, now reaching 20% of its total planned capacity. This marks a crucial development for NEXTDC as it continues to expand its footprint in the region.
Revenue and Forward Order Book
The company expects revenue recognition from the majority of these new customer contracts to begin progressively during FY27. This will follow the completion and commissioning of additional data halls over time, with full run-rate contributions anticipated from FY28 onwards.
As a result of these customer contract wins, NEXTDC's forward order book has reached a record level of 86.6MW. This forward order book represents the difference between the pro forma contracted utilisation of 172.6MW and the billing utilisation of 86.0MW at the end of FY24.
Company Overview
NEXTDC is an ASX 100-listed technology company and a leading Data Centre-as-a-Service provider in Asia. The company is known for its innovative approach to building infrastructure for the digital economy, offering critical power, security, and connectivity for global cloud computing providers, enterprises, and government entities.
NEXTDC's data centres are globally recognized for their design, construction, and operation, being the only network of Uptime Institute certified Tier IV facilities in Australia. The company also holds the distinction of achieving Tier IV Gold certification for Operational Sustainability in the Southern Hemisphere.
The increase in contracted utilisation is a positive development for NEXTDC, indicating strong customer demand and future revenue growth. This announcement is likely to positively impact the company's stock price as investors react to the increased utilisation and record forward order book.
Investor Reaction:
Analysts are expected to react positively to this news, as it demonstrates NEXTDC's ability to secure significant customer contracts and expand its capacity. The projected revenue growth from these contracts will likely boost investor confidence in the company's long-term prospects.
Conclusion:
Investors should keep an eye on NEXTDC's progress in completing and commissioning additional data halls, as well as the commencement of revenue recognition from new customer contracts. This development positions NEXTDC for continued growth and success in the data centre industry.