How NEXTDC’s $6.4B Debt Boost Fuels AI Infrastructure Expansion
NEXTDC Limited reported a 6% rise in FY25 revenue and underlying EBITDA, offset by a widened loss due to a $2.9 billion debt refinancing. The company’s strategic expansion in AI-ready data centres and a strengthened $6.4 billion debt facility position it for significant growth.
- FY25 revenue increased 6% to $427.2 million
- Underlying EBITDA rose 6% to $216.7 million
- Statutory loss after tax widened to $60.5 million due to debt refinancing costs
- Contracted utilisation grew 42% to 244.8MW with a strong forward order book
- Secured $6.4 billion in senior debt facilities post-year-end
Financial Performance and Refinancing Impact
NEXTDC Limited has delivered solid top-line growth in the fiscal year ending June 30, 2025, with revenue climbing 6% to $427.2 million and underlying EBITDA increasing by a similar margin to $216.7 million. However, the company reported a statutory loss after tax of $60.5 million, a notable widening from the prior year’s $44.1 million loss. This loss is primarily attributed to a $2.9 billion syndicated debt refinancing executed in December 2024, which incurred $26.5 million in write-offs of unamortised transaction costs and modification gains.
Strategic Expansion in AI and Data Centre Infrastructure
Amid a global surge in demand for AI infrastructure, NEXTDC is aggressively expanding its footprint both domestically and internationally. The company’s contracted utilisation surged 42% to 244.8MW, supported by a forward order book of 133.9MW expected to convert into revenue over the next four years. Key developments include new and expanded facilities in Sydney (S3, S6, S4, S5, S7), Melbourne (M2, M3, M4), Perth (P1, P2), Brisbane (B2), Darwin (D1, D2), Adelaide (A1), Kuala Lumpur (KL1), and Tokyo (TK1).
Capital Investment and Funding Strength
Capital expenditure for FY25 reached $1.7 billion, exceeding guidance, reflecting NEXTDC’s commitment to build sovereign-scale AI-ready data centres. The company ended the year with $244 million in cash and $1.75 billion in undrawn syndicated debt facilities, providing $2 billion in liquidity. Subsequent to year-end, NEXTDC secured an additional $3.5 billion in senior debt facilities, increasing total debt capacity to $6.4 billion and extending the weighted average loan maturity to 5.6 years, underscoring strong financial discipline and readiness to fund growth.
Governance, Talent Retention, and ESG Integration
In response to intensifying competition for executive talent amid rapid sector growth, NEXTDC introduced a one-off Growth Incentive Plan (GIP) to align management incentives with shareholder value creation. The Board also approved a 10% increase in fixed remuneration and expanded short- and long-term incentive opportunities for senior executives. Operationally, NEXTDC maintained a strong safety record with zero lost time injuries on construction sites and continued to embed environmental, social, and governance (ESG) considerations into its strategy, including climate risk management and sustainability certifications such as Tier IV Uptime Institute and NABERS ratings.
Outlook and Market Positioning
Positioned at the nexus of sovereign AI infrastructure and digital economy growth, NEXTDC is scaling rapidly to meet the demands of hyperscalers, government agencies, and emerging cloud providers. Its strategic investments in AI-optimised, liquid-cooled, and energy-efficient data centres are designed to support gigawatt-scale compute and exabyte-scale data flows. The company’s focus on speed, scale, sovereignty, sustainability, and security underpins its ambition to be the Asia-Pacific region’s leading digital infrastructure provider.
Bottom Line?
NEXTDC’s FY25 results underscore its bold growth trajectory and financial resilience, but execution risks and market competition will test its ability to convert a robust order book into sustained profitability.
Questions in the middle?
- How will NEXTDC manage execution risks associated with its ambitious $15 billion AI infrastructure investment program?
- What impact will the one-off Growth Incentive Plan have on long-term shareholder value and executive retention?
- How effectively can NEXTDC convert its strong forward order book into revenue amid evolving AI infrastructure demand?
