NEXTDC Limited (ASX: NXT) has increased its FY26 capex guidance by AUD 400 million. It comes after huge customer contract victories lifted the Company’s pro forma contracted utilisation to 316MW. This is up from 71MW on 30 June 2025, which is a rise of 29% in five months.
Figure 1: NEXTDC’s large-scale data centre infrastructure
ASX 100-listed tech Company announced the updated NEXTDC capex guidance FY26 on Thursday, 01 December 2025. The new range is AUD 2,200 million to AUD 2,400 million, compared with the previous guidance of between AUD 1800 million and AUD 2000 million. This substantial uplift reflects the accelerated deployment of planned inventory expansion to meet new customer commitments across NEXTDC AI data centre investment projects.
NEXTDC FY26 Capital Expenditure Outlook Scales Up to Meet Contract Demand
The revised NEXTDC capex guidance FY26 outlook signals the Company’s confidence in converting demand into operational capacity. NEXTDC will deploy the additional AUD 400 million to build and commission the infrastructure required for the recently secured customer contracts. These investments will primarily target data centre fit-outs, mechanical and electrical installations, and advanced cooling systems.
Figure 2: AI deployments drive sharp growth in cash flow
The Company’s forward order book has grown by 53% to 205 MW since 30 June 2025. This represents the difference between the pro forma contracted utilisation of 316 MW and the billing utilisation of 111 MW. The forward order book is expected to progressively convert to billings and revenue over FY26 to FY29, creating a clear path to enhanced cash flow generation.
Record Contract Wins Drive NEXTDC AI Data Centre Investment Acceleration
NEXTDC AI data centre investment is the direct result of exponential demand for cloud hyperscaler, AI workload deployment and corporate enterprise. The 71 MW of additional contracted utilisation since 30 June 2025 demonstrates the Company’s ability to secure large-scale commitments. The contracts cover several NEXTDC facilities within its national portfolio in Sydney, Melbourne, Brisbane, Perth and Adelaide.
The Company’s strategic locations in key metro areas continue to draw interest from customers looking for high-capacity server and storage solutions. NEXTDC has Australia’s only network of Uptime Institute Tier IV certified data centres providing the power, security and connectivity needed for AI and cloud computing workloads.
Financial Outlook Remains on Track Despite Higher Investment
Despite the increased NEXTDC capex guidance FY26, the Company has maintained its net revenue of AUD 390 million to AUD 400 million. Underlying EBITDA guidance of AUD 230 million to AUD 240 million also remains unchanged. This reflects confidence in the ability to convert contracted capacity into billings and operate with discipline.
The Company’s balance sheet provides significant capacity to fund the elevated investment program. NEXTDC had available debt facilities totalling AUD 6.4 billion as at 30 June 2025, with pro forma liquidity of AUD 5.5 billion. Gearing stood at 18%, providing substantial financial flexibility to support growth without equity dilution.
Market Context: AI Infrastructure Driving NEXTDC FY26 Capital Expenditure Outlook
The broader market backdrop supports NEXTDC’s aggressive investment stance. NVIDIA CEO Jensen Huang recently projected USD 3 trillion to USD 4 trillion in global AI infrastructure spending by the end of the decade. The top four hyperscalers alone are now spending USD 600 billion annually on data centre capacity, double the previous run rate.
NEXTDC’s facilities are specifically engineered to support next-generation AI workloads requiring ultra-high-density cooling and liquid direct-to-chip technologies. The Company’s M3 Melbourne facility has been upgraded to 200 MW total planned capacity, while major expansions continue at S3 Sydney and multiple other sites. This positions NEXTDC to capture a meaningful share of Australia’s AI infrastructure buildout.
NEXTDC Share Price and Investor Implications
NEXTDC shares traded at AUD 13.875 as at 01 December 2025, giving the Company a market capitalisation of AUD 8.70 billion. The stock has traded in a 52-week range of AUD 9.400 to AUD 18.220 per share. The capex increase demonstrates management’s willingness to invest aggressively when presented with attractive risk-adjusted returns on contracted capacity.
Figure 4: NEXTDC share price performance
Investors should note that elevated capital expenditure will temporarily impact free cash flow during the build-out phase. However, the contracted nature of the deployments provides revenue visibility and reduces execution risk. The forward order book of 205 MW represents approximately 1.8 times current billing utilisation, indicating substantial near-term growth potential.
FAQs
Q1: What is NEXTDC’s revised capex guidance for FY26?
NEXTDC has increased its FY26 capital expenditure guidance to AUD 2,200 million to AUD 2,400 million. This represents an AUD 400 million increase from the previous range of AUD 1,800 million to AUD 2,000 million.
Q2: How much has NEXTDC’s contracted utilisation increased?
Pro forma contracted utilisation has increased by 71 MW or 29% to 316 MW since 30 June 2025. This growth is driven by recent customer contract wins across multiple facilities.
Q3: Has NEXTDC changed its revenue or EBITDA guidance for FY26?
No, NEXTDC has maintained its FY26 net revenue guidance of AUD 390 million to AUD 400 million. Underlying EBITDA guidance of AUD 230 million to AUD 240 million also remains unchanged.
Q4: What is NEXTDC’s current forward order book?
NEXTDC’s pro forma forward order book has increased by 53% to 205 MW since 30 June 2025. This represents the difference between contracted utilisation of 316 MW and billing utilisation of 111 MW.
