NEXTDC Limited (ASX: NXT) has announced a fully underwritten entitlement offer to raise approximately A$1.5 billion. The offer was announced on 20 Apr 2026 as the Company reported a record increase in contracted utilisation, driven by surging demand from hyperscale and AI customers across Australia.
Figure 1: NEXTDC data centre facility [Courtesy: NEXTDC]
The NEXTDC entitlement offer comes at a decisive moment for the data centre sector. Contracted utilisation has risen 60% since 31 Dec 2025, reaching a pro forma total of 667 megawatts (MW) as at 31 Mar 2026. The Company is moving quickly to convert that demand into physical infrastructure and long-term revenue.
Record Demand Drives a Transformational Capital Raise
NEXTDC reported a record 250MW increase in contracted utilisation at its S4 Sydney facility. This single addition pushed the Company’s pro forma Forward Order Book to 544MW as at 31 Mar 2026, an 83% increase from the 297MW recorded at 31 Dec 2025.
The Forward Order Book represents contracted capacity that exceeds billing utilisation at a given point in time. NEXTDC expects this 544MW pipeline to progressively convert to billing utilisation, revenue, and EBITDA over the period from FY26 through to FY30.
Contracted EBITDA Projected to Exceed A$1.0 Billion
On a contracted basis, the Company’s 544MW Forward Order Book, combined with its existing billing utilisation of 123MW, is expected to generate EBITDA in excess of A$1.0 billion. This represents more than four times the mid-point of NEXTDC’s FY26 EBITDA guidance of A$235 million.
Figure 2: NEXTDC contracted EBITDA outlook [Courtesy: NEXTDC]
FY26 capital expenditure guidance has been revised upward to a range of A$2,700 million to A$3,000 million, up from the prior range of A$2,400 million to A$2,700 million.
The increase reflects accelerated inventory expansion and the purchase of long-lead items to support delivery at the S4 Sydney site.
FY27 Capex Forecast Set at Approximately A$5.0 Billion
The scale of the build-out ahead is substantial. NEXTDC currently forecasts FY27 capital expenditure of approximately A$5.0 billion.
This reflects the full ramp of construction activity across the Company’s Sydney and Melbourne hyperscale development pipeline, which spans the S4 Sydney, S5 Sydney, S7 Sydney, M3 Melbourne, and M4 Melbourne sites.
The Structure of the NEXTDC Share Offer Australia
The NEXTDC entitlement offer is structured on a 1-for-5.4 pro-rata accelerated non-renounceable basis. Eligible shareholders are entitled to subscribe for one new share for every 5.4 existing shares held on the record date of 7:00pm (Sydney time) on 22 Apr 2026.
The offer price is A$12.70 per new share. This represents a discount of 8.6% to the theoretical ex-rights price of A$13.90, and a discount of 10.1% to the last closing price of A$14.12 on 17 Apr 2026.
Approximately 118.7 million new shares are expected to be issued under the offer, equivalent to approximately 18.5% of NEXTDC’s existing shares on issue.
Retail Shareholders Have Until 11 May 2026 to Participate
The retail component of the NEXTDC share offer Australia opened on 27 Apr 2026 and closes at 5:00pm (Sydney time) on 11 May 2026. Eligible Retail Shareholders in Australia and New Zealand may elect to take up all or part of their entitlement, or allow their entitlement to lapse.
NEXTDC shareholder eligibility Australia requires that participants hold a registered address in Australia or New Zealand as at the record date.
Eligible Retail Shareholders who take up their full entitlement may also apply for additional new shares through the Top Up Facility, up to a maximum of 100% of their existing entitlement, subject to availability and any scale back.
Funding Structure and Liquidity Position
The NEXTDC entitlement offer sits within a broader A$2.2 billion capital plan announced on 20 Apr 2026. Alongside the equity raise, the Company is also proceeding with a A$1.7 billion Hybrid Securities Offer, supported by binding commitments totalling A$1.7 billion from La Caisse de dépôt et placement du Québec.
The Hybrid Securities Offer comprises a A$1.0 billion Initial Series announced on 7 Apr 2026, and a A$0.7 billion Delayed Draw Series announced on 20 Apr 2026. La Caisse has provided binding commitments across both tranches.
Pro Forma Liquidity Expected at Approximately A$5.9 Billion
Following completion of the NEXTDC entitlement offer and Hybrid Securities Offer, the Company expects pro forma liquidity of approximately A$5.9 billion as at 30 Jun 2026.
This is calculated from available liquidity of A$4,218 million as at 31 Dec 2025, plus the A$1,700 million Hybrid Securities Offer and A$1,507 million from the entitlement offer, less A$1,565 million in forecast second-half FY26 capital expenditure.
Figure 3: NEXTDC balance sheet summary and key financial metrics [Courtesy: NEXTDC]
NEXTDC has also disclosed additional capital initiatives under active development, including approximately A$1.5 billion in incremental senior debt from key relationship banks, a subordinated Wholesale Notes issuance, and a Western Sydney JVCo capital partnership for the S4 and S7 sites planned for 2027 and beyond.
Key Development Sites Driving Growth
The proceeds from the NEXTDC share offer Australia will fund accelerated construction across multiple sites. NEXTDC intends to invest approximately A$1.5 billion in the development of contracted utilisation at S4 Sydney through to the end of FY27.
S4 Sydney, which has received Development Approval, has a total planned capacity of approximately 350MW. With 250MW now under contract, equivalent to approximately 71% of capacity, the site represents the single largest source of Forward Order Book growth in the Company’s history.
Melbourne and Sydney Pipeline Under Active Development
The M3 Melbourne facility is delivering its final 185MW of capacity, taking total capacity to 225MW in line with contracted customer requirements. The M4 Melbourne site, a approximately 150MW facility at Port Melbourne, has received Development Approval and early works for Stage 1 of approximately 10MW initial capacity are expected to commence in the second half of FY26.
The S5 Sydney site, with planned capacity of approximately 80MW, is progressing through the NSW Government’s Investment Delivery Authority program.
Early works for Stage 1 of approximately 20MW initial capacity are expected to commence in the second half of FY26. S7 Sydney, a larger site with approximately 550MW of planned total capacity, remains at the design and town planning stage.
NXT ASX Share Price
NEXTDC Limited (ASX: NXT) is currently trading at A$14.160 per share, with a market capitalisation of A$10.10 billion. The 52-week range stands at A$10.910 to A$18.220 per share.
Figure 4: NEXTDC (ASX: NXT) share price performance over one year [Courtesy: ASX]
Industry Outlook
Australian data centre demand is forecast to grow at a compound annual growth rate of over 21%, rising from approximately 1.5 gigawatts (GW) in CY25 to approximately 3.9GW by CY30, according to McKinsey data as at Dec 2025.
A near-term supply shortfall of approximately 400MW is already evident in CY26, with forecast demand of approximately 1.9GW against available supply of approximately 1.5GW.
This structural imbalance is intensifying the urgency of capacity delivery for operators positioned to build at scale.
Future Direction and Impact on NXT Shareholders
The NEXTDC entitlement offer and its broader capital plan carry direct implications for investors holding or monitoring NEXTDC shareholder eligibility Australia and the Company’s growth trajectory:
- The NEXTDC entitlement offer is priced at A$12.70 per new share, representing a 10.9% discount to the last close of A$14.25 on 1 May 2026
- Pro forma contracted utilisation stands at 667MW as at 31 Mar 2026, up 60% from 31 Dec 2025
- The Forward Order Book of 544MW is expected to convert to billing utilisation progressively from FY26 through to FY30
- Contracted EBITDA from the existing Forward Order Book is expected to exceed A$1.0 billion, more than four times the FY26 EBITDA guidance midpoint
- FY26 capex has been revised to A$2,700 million to A$3,000 million, with FY27 capex forecast at approximately A$5.0 billion
- Pro forma liquidity is expected to reach approximately A$5.9 billion following completion of both the entitlement offer and Hybrid Securities Offer
- The retail component of the NEXTDC share offer Australia closes at 5:00pm (Sydney time) on 11 May 2026
- Eligible shareholders who do not participate will experience dilution, as the offer is non-renounceable and entitlements cannot be traded or transferred
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Frequently Asked Questions
Q1. What is the NEXTDC entitlement offer price?
Ans. The offer price is A$12.70 per new share, representing a discount of 8.6% to the theoretical ex-rights price of A$13.90 and a discount of 10.1% to the last closing price of A$14.12 on 17 Apr 2026.
Q2. Who qualifies for NEXTDC shareholder eligibility Australia?
Ans. Eligible Retail Shareholders must hold a registered address in Australia or New Zealand as at the record date of 7:00pm (Sydney time) on 22 Apr 2026, and must not have been invited to participate in the Institutional Entitlement Offer.
Q3. What is the closing date for the NEXTDC share offer Australia retail component?
Ans. The retail component closes at 5:00pm (Sydney time) on Monday, 11 May 2026.
Q4. What will the proceeds from the NEXTDC entitlement offer be used for?
Ans. Net proceeds will fund the accelerated development of contracted utilisation, including approximately A$1.5 billion invested in S4 Sydney through to the end of FY27, alongside supporting the broader development pipeline across Melbourne and Sydney.
Q5. What happens if an eligible shareholder does not participate?
Ans. As the offer is non-renounceable, entitlements cannot be traded or transferred. Shareholders who do not participate will have their percentage shareholding diluted and will not be able to realise value for their lapsed entitlements.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on publicly available sources including the NEXTDC investor presentation,and the ASX announcement. Share price and market capitalisation data reflect figures provided at the time of publication. Investing in securities involves risk, including the possible loss of principal. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies or organisations mentioned.
