Sydney, June 22, 2026, 04:09 (AEST)
- NEXTDC ended the session Friday at A$15.18, adding 1.6%. That puts its gain at roughly 4.3% over the week.
- Kapitol Group said it has started building NEXTDC’s GE1 edge data centre, a project with about 4.4 megawatts, in Corio near Geelong.
- State Street reduced its stake in NEXTDC, now holding 10.48% down from 11.52%, according to a filing last week.
NEXTDC Ltd is set for Monday’s Australian session after new signs its regional push is shifting to the build phase. Kapitol said it expects GE1’s first stage to open in the back half of 2027. Planning documents put the cost of the project near A$85 million.
Edge data centres like this one are built closer to customers instead of in centralised locations, aiming to cut lag times in moving and processing data. “As more data is generated and consumed outside capital cities, businesses need faster, more reliable access,” Kapitol co-founder Andrew Deveson said. Herald Sun
GE1 is a smaller site when compared to the big campuses NEXTDC is putting up for cloud and AI customers. The 2,100-square-metre build adds to the company’s reach outside the major capital cities, and aims for a top-end Tier IV badge, supporting up to 4.4 MW of IT load.
The shares rose 4.3% for the week while the S&P/ASX 200 added just 0.3%. Friday’s session saw the benchmark drop 0.9% to 8,828.70, hit by losses in big miners. NEXTDC still managed to stay ahead of most.
Rivalry for customers, energy supply and building slots is still strong. Macquarie Technology Group said it’s on track to open its IC3 Super West facility in Sydney in September, which should boost Macquarie Park’s total campus capacity to around 65 MW.
NEXTDC’s main strength is the size of its contracted load. As of March 31, the company listed pro-forma contracted utilisation at 667 MW and a further 544 MW in the order book. That’s capacity locked in by customers, but billing hasn’t started yet. Contracted EBITDA tops A$1 billion. EBITDA, or earnings before interest, tax, depreciation and amortisation, is a standard way to track operating results.
Management faces a real test on funding the build. NEXTDC said in May it had lined up A$1.8 billion of new senior debt, taking pro-forma liquidity to roughly A$8.4 billion after rounds of equity, hybrid, and debt raising. “The market is moving quickly, but delivery is what matters,” Chief Executive Craig Scroggie said. NEXTDC
Still, even with contracts locked in, there’s execution risk. Delays in grid hookups or higher build costs could hit NEXTDC. Customers might also drag out their own installs before paying for use. If bond yields climb, the cost of NEXTDC’s heavy expansion goes up, and its share price could feel it.
Traders are watching for Australian inflation numbers on Wednesday and May jobs data set for Thursday. Both reports come after the Reserve Bank of Australia left its cash rate at 4.35% and kept the door open for more hikes. A surprise jump in inflation could push yields up and pressure growth stocks.
Friday, investors seemed to reward NEXTDC for its order pipeline and funding access. But the real challenge is ahead. The company now has to deliver sites on time, get power connected and turn those contracted megawatts into steady revenue—without a jump in funding requirements.
