NEXTDC has increased its contracted utilisation by 16MW to 244MW, driven by new hyperscale customer contracts at its Kuala Lumpur data centre, KL1, set to launch in early 2026.
- 7% rise in pro forma contracted utilisation to 244MW as of May 31, 2025
- KL1 data centre in Kuala Lumpur secures first 10MW hyperscale customer
- KL1 designed to meet Uptime Institute Tier IV standards for resilience
- Forward order book reaches record 135MW
- Revenue from new contracts expected to ramp up from FY27 and fully realise by FY28
Strategic Growth in Asia
NEXTDC Limited, a leading Australian data centre provider, has announced a significant 7% increase in its contracted utilisation, rising by 16MW to a total of 244MW as of 31 May 2025. This growth is largely attributed to recent customer contract wins at its Kuala Lumpur data centre, KL1, which is currently under development.
The KL1 facility, representing a key milestone in NEXTDC's expansion into Asia, has secured its first hyperscale customer with a 10MW contract. This accounts for 15% of KL1's planned capacity and underscores the growing demand for high-density, AI-optimised infrastructure in the region.
Building for the AI Era
Scheduled to go live in early 2026, KL1 is being constructed to achieve the prestigious Uptime Institute Tier IV Certification for both Design and Construction. This certification is the highest global standard, ensuring exceptional fault tolerance, resilience, and operational integrity; critical attributes for supporting AI workloads and hyperscale operations.
CEO Craig Scroggie highlighted the strategic importance of KL1, describing it as a foundational platform for the emerging AI economy. He emphasized that the facility is purpose-built to meet the five pillars defining AI infrastructure – speed, scale, security, sustainability, and sovereignty. This positions NEXTDC to capitalize on the accelerating demand for sovereign, AI-native digital infrastructure across high-growth markets in Asia.
Forward Order Book and Revenue Outlook
The company's forward order book has reached a record 135MW, reflecting strong customer confidence and robust demand. While most of the revenue from these new contracts is expected to ramp up during the 2027 financial year, full revenue impact is anticipated from 2028 onwards, following the completion and commissioning of additional data halls at KL1.
NEXTDC's expansion strategy not only strengthens its footprint in the Asia-Pacific region but also aligns with broader industry trends emphasizing AI-optimised infrastructure. The company’s focus on sustainability and operational excellence, including carbon neutrality certification and energy efficiency, further enhances its competitive positioning.
Looking Ahead
As NEXTDC prepares to bring KL1 online, the company is poised to play a pivotal role in supporting the digital transformation and AI-driven growth in the region. The successful execution of this project will be closely watched by investors and industry observers alike, as it signals NEXTDC’s ability to deliver cutting-edge infrastructure that meets evolving market demands.
Bottom Line?
NEXTDC’s Kuala Lumpur expansion marks a decisive step into AI-driven infrastructure, setting the stage for future growth and regional leadership.
Questions in the middle?
- How will the ramp-up of KL1’s revenue impact NEXTDC’s overall financial performance in FY27 and FY28?
- What are the risks or potential delays associated with achieving Tier IV certification and commissioning KL1 on schedule?
- How might NEXTDC’s expansion influence competitive dynamics in the Asia-Pacific data centre market?