NEXTDC Raises FY26 Capex Guidance by A$400 Million Amid Contract Wins
NEXTDC has reported a significant 29% increase in contracted utilisation to 316MW, prompting a $400 million rise in FY26 capital expenditure guidance to support accelerated capacity expansion.
- Contracted utilisation rises 29% to 316MW since June 2025
- Forward order book grows 53% to 205MW
- FY26 capital expenditure guidance increased by A$400 million to A$2.2–2.4 billion
- Net revenue and underlying EBITDA guidance for FY26 remain unchanged
- Expansion driven by recent customer contract wins
Strong Contract Wins Drive Utilisation Growth
NEXTDC Limited, a leading Australian data centre provider, has revealed a substantial increase in its contracted utilisation, rising by 71MW or 29% to 316MW since the end of June 2025. This jump reflects a series of recent customer contract wins that have bolstered the company’s forward order book by 53% to 205MW. These figures underscore NEXTDC’s growing footprint in the data centre sector amid rising demand for cloud infrastructure and digital services.
Capital Expenditure Guidance Revised Upwards
In response to this surge in contracted utilisation, NEXTDC has revised its FY26 capital expenditure guidance upwards by A$400 million, now targeting a range of A$2.2 billion to A$2.4 billion. This increase reflects an accelerated investment in inventory expansion to build and deploy additional capacity required to meet the new customer contracts. The move signals NEXTDC’s commitment to scaling its infrastructure rapidly to capture market opportunities.
Revenue and Earnings Outlook Steady
Despite the increased capital outlay, NEXTDC has maintained its FY26 net revenue and underlying EBITDA guidance at previous levels. This suggests management’s confidence in the profitability and cash flow generation of the expanded operations, although it leaves open questions about the timing of revenue recognition and margin impact from the accelerated capex.
Strategic Positioning in a Competitive Market
NEXTDC’s network of Tier IV certified data centres, combined with its focus on sustainability and operational efficiency, continues to differentiate it in the competitive Australian and Asia-Pacific markets. The company’s ability to secure large-scale contracts and expand its forward order book indicates strong demand for its services, particularly from hyperscale cloud providers and enterprise customers seeking reliable, energy-efficient infrastructure.
Looking Ahead
The pro-forma forward order book is expected to convert progressively into billings and revenue from FY26 through FY29, positioning NEXTDC for sustained growth. Investors will be watching closely how the company manages the balance between aggressive capital investment and maintaining its earnings trajectory in the coming years.
Bottom Line?
NEXTDC’s expanded contract wins and capex raise set the stage for accelerated growth, but execution and margin impact remain key watchpoints.
Questions in the middle?
- How will the increased capex affect NEXTDC’s cash flow and financing needs?
- What is the expected timeline for the new capacity to translate into revenue and profits?
- Will the unchanged EBITDA guidance hold as the company scales its infrastructure aggressively?