Power Risks Mitigated as DXN Upgrades Kiribati’s Critical Cable Landing Station
DXN Limited has landed a $0.6 million contract with Kiribati’s state-owned BwebwerikiNET Limited, boosting its FY25 project wins to $1.8 million and reinforcing its foothold in Micronesia’s critical data infrastructure.
- DXN wins $0.6 million contract with Kiribati’s BwebwerikiNET Limited
- Project enhances internet connectivity via East Micronesia Cable System
- FY25 year-to-date project wins rise to approximately $1.8 million
- Contract includes design and installation of permanent Co-Location and Office Modules
- Addresses critical power supply vulnerabilities at Kiribati’s cable landing station
Strategic Expansion in Micronesia
DXN Limited, a specialist in prefabricated modular data centres, has announced a significant contract win valued at $0.6 million with BwebwerikiNET Limited (BNL), a state-owned enterprise in the Republic of Kiribati. This deal not only strengthens DXN’s presence in the Pacific Islands but also contributes to the company’s growing momentum in FY25, pushing total project wins to approximately $1.8 million year-to-date.
The contract focuses on enhancing internet connectivity across Micronesia by upgrading infrastructure linked to the East Micronesia Cable System (EMCS), a collaborative initiative among the Federated States of Micronesia, Kiribati, and Nauru. BNL operates the Southern Cross NEXT Submarine Cable Landing Station (CLS) on Kiritimati Island, a critical node connecting Sydney, Auckland, and Los Angeles with Pacific Islands including Kiribati, Fiji, and Tokelau.
Addressing Infrastructure Vulnerabilities
Currently, BNL’s CLS operates out of a temporary Co-Location facility and relies on a single backup generator alongside an unreliable national power grid, exposing the station to significant operational risks. DXN’s contract involves designing, building, and installing a permanent Co-Location Module and an Office Module, replacing the temporary structures and providing a more robust platform for interconnection services and personnel operations.
In addition, DXN will enhance the Uninterruptible Power Supply (UPS) system by integrating a second backup generator, mitigating the risk of catastrophic failures that could disrupt critical internet connectivity in the region. This upgrade is vital for the resilience of the CLS and the broader network it supports.
Growth Momentum and Market Position
Managing Director Shalini Lagrutta expressed confidence in the company’s trajectory, highlighting the trust placed by BNL as a testament to DXN’s reliability and tailored solutions. The recent Pacific Telecom Conference further underscored growing interest from both new and existing customers, signaling a positive pipeline for future contracts.
DXN’s vertically integrated model, spanning design, engineering, manufacturing, and operations, positions it uniquely to capitalize on infrastructure demands in the Asia Pacific region, particularly in underserved island markets where connectivity is both critical and challenging.
The project’s execution will commence at DXN’s Perth factory, with completion anticipated within 2025, marking another milestone in the company’s strategic expansion across the Pacific Islands.
Bottom Line?
DXN’s Kiribati contract win underscores its rising influence in Pacific data infrastructure, setting the stage for further regional growth.
Questions in the middle?
- Will DXN secure additional contracts from other Pacific Island nations following this project?
- How might delays or logistical challenges in remote island locations impact project timelines?
- What are the long-term revenue and margin implications of expanding modular data centre operations in Micronesia?
