DXN Secures $1.2M Solomon Islands Cable Landing Station Contract Amid AI HPC Market Entry

Strategic Pacific Contract Boosts DXN’s Regional Footprint

DXN Limited (ASX:DXN) has strengthened its position in Pacific telecommunications infrastructure by securing a A$1.2 million contract with the Solomon Islands Submarine Cable Company Limited (SISCC). The deal involves designing, manufacturing, delivering, installing, and commissioning a modular Cable Landing Station (CLS) to support the Australian Government-funded Adamasia Cable System 1 (ACS-1) submarine cable project. This contract reinforces DXN’s role as a trusted infrastructure partner in a strategically significant corridor, underpinning regional connectivity and digital resilience.

The ACS-1 cable will connect the Solomon Islands to the broader Bulikula regional network, part of Google’s Pacific Connect initiative, with completion expected by late 2027. DXN’s modular CLS will incorporate critical infrastructure elements including power, cooling, fire suppression, and standby generation, with full delivery scheduled by April 2027. The project highlights DXN’s growing credibility in government-backed, high-stakes digital infrastructure projects across the Pacific.

Entry into AI HPC Market with $8.8 Million Neo-Cloud Contract

Simultaneously, DXN has made a significant leap into the global AI High-Performance Computing (HPC) market, securing a maiden A$8.8 million contract from a US-listed neo-cloud operator. This proof-of-concept pilot involves delivering a 1.4MW critical IT module featuring DXN’s proprietary prefabricated AI HPC design, capable of supporting GPU densities up to 150kW per rack with advanced direct-to-chip liquid cooling.

The contract is structured to potentially evolve into a campus-scale program valued at over US$200 million, contingent on successful pilot delivery. Manufacturing has commenced at DXN’s Welshpool, Western Australia facility, with full Phase 1 production expected in early Q1 FY27 and commissioning targeted within six months of contract signing.

Financial Update: Backlog Growth and Capital Raise

DXN reported Q4 FY26 revenue of $4.3 million, down approximately 25% year-on-year due to project deferrals and supplier delays, partially offset by progress on US neo-cloud and South American projects. The company ended the quarter with a robust backlog of $23.5 million, including a modular backlog of $19 million, with 45% anticipated for delivery in the first half of FY27.

Supporting its growth ambitions, DXN completed a A$7 million institutional placement at A$0.13 per share during the quarter. The capital raise is earmarked for delivering the AI HPC contract, scaling manufacturing capacity in Southeast Asia, and funding working capital needs tied to the expanding project pipeline.

Asian Manufacturing Expansion and Joint Venture Progress

DXN continues to execute its Asia-Pacific expansion strategy with significant progress in Malaysia and Indonesia. The company has established subsidiaries in Malaysia, Indonesia, and Singapore, secured and leased a factory site in Johor, Malaysia, and appointed a Head of Production to commence in Q1 FY27. In Indonesia, the joint venture PT SSDXN with Super Sistem Indonesia is preparing for initial orders, targeting commercial operations by early Q2 FY27.

This regional footprint aims to localise manufacturing and sales in one of Southeast Asia’s fastest-growing digital infrastructure markets, reducing reliance on exports and improving supply chain resilience.

Robust Project Pipeline and Outlook

DXN’s pipeline has expanded to 99 identified projects, with 7% in verbal contracting stages and 21% related to global AI compute infrastructure customers. The company anticipates converting approximately 45% of its backlog into revenue in 1HFY27.

Managing Director Shalini Lagrutta emphasised the strategic importance of the AI HPC contract and Pacific infrastructure wins, noting that DXN is well positioned to capitalise on accelerating demand for high-density AI compute infrastructure and modular data centre solutions. The company expects sustainable top-line growth supported by a strengthened balance sheet, expanded manufacturing capabilities, and a diversified, high-quality customer base.