DXN Wins $1 Million Pacific Cable Landing Station Contract

Pacific Expansion Boosted by New Cable Landing Station Contract

DXN Limited (ASX:DXN) has secured a $1 million contract from the American Samoa Telecommunications Authority (ASTCA) to design, manufacture, and install a Cable Landing Station (CLS) as part of the Le Vasa subsea fibre-optic cable project. This contract marks a significant step in DXN's strategy to deepen its presence in the Pacific telecommunications market, delivering critical infrastructure that will enhance connectivity between American Samoa, Fiji, and French Polynesia.

The CLS will be a prefabricated modular facility equipped with essential power, cooling, fire detection, suppression systems, and standby generation. Manufacturing is set to commence immediately, with delivery scheduled for March 2027. The project aligns with ASTCA’s efforts to bolster resilient telecom infrastructure and underscores DXN’s expertise in complex prefabricated critical infrastructure solutions.

Strategic Divestment of Tasmanian Data Centre Sharpens Focus

In a parallel move, DXN has completed the sale of its Hobart-based colocation data centre, operated through its wholly owned subsidiary TAS01, for up to $520,000. The divestment includes an upfront payment of $400,000 and a $120,000 earn-out contingent on revenue targets. While the landlord's consent to the lease transfer remains pending, the purchaser, DADT Pty Ltd, plans to continue servicing existing customers including Tasmanian government and enterprise clients.

Managing Director Shalini Lagrutta framed the divestment as a deliberate step to concentrate DXN’s capital and management resources on its core prefabricated modular platform, which is driving the company's growth. This move follows a series of contract wins and expansions focused on modular infrastructure across Asia-Pacific, indicating a clear strategic pivot away from regional colocation assets.

Modular Infrastructure at the Core of DXN’s Growth

DXN operates through three divisions: modular prefabricated data centres, data centre operations, and a capital-light Data Centre as a Service (DCaaS) model. The new CLS contract complements the company’s existing portfolio and builds on recent successes, including a $5.3 million Cable Landing Station contract in Latin America and a landmark $8.8 million AI HPC modular data centre contract with a US neo-cloud operator. These developments reinforce DXN’s positioning as a trusted partner for telecom and strategic infrastructure projects that intersect with regional defence and commercial interests.

While the CLS contract is modest relative to some recent multi-million dollar deals, it is a strategic foothold in a region where telecom infrastructure is gaining heightened geopolitical and commercial significance. The Le Vasa Cable itself, launched in January 2026 with backing from Google’s Pacific Connect initiative, represents a $45 million investment in Pacific connectivity, underscoring the growing importance of subsea cable infrastructure in the region.