Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

More contract wins for Nextdc (ASX:NXT), shares jump 7%

Nextdc (ASX:NXT) announced more contract wins for its NSW data centre facilities. Nextdc shares are up 7% in early trading. 

Nextdc (ASX: NXT) announced more contract wins for its NSW data centre facilities. Nextdc shares are up 7% in early trading.

What is Nextdc?

Nextdc offers a service of data centres for clients. It provides the infrastructure for the digital economy. It provides power, security and connectivity for global cloud computing providers, enterprise and government.

What did the data centre business announce?

Its contracted commitments at its NSW data centre facilities have increased by approximately 4MW, to more than 36MW.

Contracted customer commitments and expansion options at the NSW data centres are now approaching 60MW. With these customer wins, Nextdc has committed to completing the S2 (its second Sydney data centre) fit out to a total of 30MW.

The revenue from these new commitments is expected to commence during FY21 after completion and commissioning of the associated data halls.

Nextdc CEO and Managing Director Craig Scroggie said: “The demand for our data centre services continues to accelerate and exceed our expectations, yet requires discipline and patience as the nexus between the hyperscale and capacity planning, site development, infrastructure deployment and revenue recognition can in practice be two to three years for these very large hyperscale developments. This is all part of Nextdc’s digital infrastructure business model, which continues to build long term value through contracted capacity and tangible asset backing.”

Summary

Nextdc has a solid business model and it’s clearly in high demand. The shift to online by many businesses during COVID-19 will help adoption of cloud services. However, I don’t know enough (yet) about the profit potential and expected lifespan of data centres to know if today’s Nextdc share price is compelling or expensive.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned. 

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content