NEXTDC Limited (ASX: NXT) has delivered a record first-half result for the period ended 31 December 2025, reporting broad-based growth across revenues, contracted capacity, and its forward order book – all while absorbing AUD 1.285 billion in capital expenditure to build out the next generation of its national and international data centre network.
The results, announced to the ASX, confirm the company’s position as Australia’s dominant data centre operator at a time when AI-driven demand for digital infrastructure is reshaping the sector faster than almost anyone anticipated.
The Headline Numbers from NEXTDC’s 1H26 Results
NEXTDC’s half-year numbers were clean across the board:
- Net revenue rose AUD 21.4 million, or 13%, to AUD 189.2 million (1H25: AUD 167.8 million)
- Total revenue climbed 13% to AUD 231.8 million (1H25: AUD 205.5 million)
- Underlying EBITDA grew AUD 9.9 million, or 9%, to AUD 115.3 million (1H25: AUD 105.4 million)
- Net loss after tax narrowed by AUD 3.3 million to AUD (39.4) million
- Liquidity, including cash and undrawn debt, stood at AUD 4.2 billion as at 31st December 2025
Strong numbers. But the figure that really caught the market’s attention was elsewhere.
137% Jump in Contracted Utilisation
NEXTDC’s contracted utilisation surged 137% over the 12-month period, rising by 240.5 megawatts to reach 416.6MW. That’s the kind of growth that reflects a structural shift in demand, not just a good sales quarter.
The company’s forward order book – representing contracted capacity not yet billed – sits at 296.8MW. That pipeline is projected to convert into revenue across the period from FY26 through to FY29.
Chief Executive Officer and Managing Director Craig Scroggie put it plainly:
“The step change in the scale of the Company’s activities over the past six months represents the culmination of many years of work to position NEXTDC to capture the unprecedented demand.”
He added that the record forward order book is expected to drive a material uplift in revenues and earnings as capacity comes online through to FY29.
Development Activity: More Capacity, Bigger Sites
NEXTDC used the result to announce several meaningful upgrades to its development pipeline:
- M3 Melbourne’s total planned capacity has been upgraded from 200MW to 225MW
- S4 Sydney’s planned capacity has been lifted from 300MW to 350MW
- Development approval has been obtained for both S4 Sydney and M4 Melbourne
- 33MW of additional built capacity was added during 1H26, split across NSW/ACT (8MW) and Victoria (25MW)
Sites actively progressing at 31st December 2025 include 20MW at S3 Sydney, 185MW at M3 Melbourne, 15MW at KL1 Kuala Lumpur (due to open during 2H26), and initial works commenced for TK1 Tokyo.
Planning works continue on S7 Sydney, GC1 Gold Coast, and AK1 Auckland – suggesting the company’s geographic footprint is far from settled.
NEXTDC’s data centre facilities are being expanded across Australia and internationally to meet surging AI and cloud demand. [NEXTDC]
Capital Formation: Notes Offering and JVCo Structure on the Table
NEXTDC is preparing to launch a subordinated notes offering to fund its growing contracted capacity pipeline. In parallel, the company is progressing a joint venture co-investment (JVCo) structure for S4 Sydney and S7 Sydney.
Barrenjoey has been appointed as Lead Financial Adviser across both programs. The JVCo structure is designed to provide capital recycling capacity while allowing NEXTDC to retain operational control and long-term economic participation across its hyperscale platform.
Cadence Advisory is acting as an Independent Financial Adviser.
The moves reflect a company managing an AUD 2.4–2.7 billion capex program for FY26 – upgraded from the prior guidance range of AUD 2.2–2.4 billion – while maintaining AUD 4.2 billion in liquidity headroom.
FY26 Guidance: Revenue and EBITDA Unchanged, Capex Lifted
NEXTDC’s full-year guidance for FY26 is as follows:
- Net revenue: AUD 390 million to AUD 400 million (unchanged)
- Underlying EBITDA: AUD 230 million to AUD 240 million (unchanged)
- Capital expenditure: AUD 2,400 million to AUD 2,700 million (upgraded)
Scroggie said the company “remains on track to deliver another record financial performance in FY26,” citing total liquidity of AUD 4.2 billion, a record forward order book, and a record sales pipeline as key supports.
Why This Result Matters for AI Infrastructure in Australia
NEXTDC’s trajectory sits squarely within a much larger story. The surge in AI compute demand has been reshaping data centre economics at a pace, with hyperscale customers locking in long-duration contracts for capacity years before it comes online.
That trend is clearly reflected in NEXTDC’s 296.8MW forward order book. The company’s Victorian ecosystem, in particular, has been a magnet for AI and high-performance computing workloads. As AI infrastructure investment across the ASX continues to grow, NEXTDC represents one of the most direct exposures to that thematic in the Australian market.
According to Grand View Research, the global data centre market is projected to reach USD 902.19 billion by 2033, with AI workloads driving a significant share of new capacity demand.
Global data centre market projection. [Grand View Research]
Investor’s Outlook
As at 25th February 2026, NEXTDC Limited (ASX: NXT) shares were trading at AUD 14.27 per share. The Company’s market capitalisation stands at approximately AUD 8.98 billion. Analyst consensus price targets average AUD 21.44, with a range of AUD 17.17 to AUD 30.83 per share.
