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.

Nextdc (ASX:NXT) share price on watch after new Sydney data centre

The Nextdc Ltd (ASX:NXT) share price will be on watch today after announcing a new data centre for Western Sydney.

The Nextdc Ltd (ASX: NXT) share price will be on watch today after announcing a new data centre for Western Sydney.

Nextdc’s latest Sydney data centre

The Australian data centre business announced “S4”, which it called a significant long-term expansion opportunity.

Nextdc said that the purchase price of the S4 site is approximately $124 million.

This new data centre will provide services to the hyperscale cloud providers in a new availability zone within the Sydney market that is not currently serviced by Nextdc’s existing data centres (S1, S2 and S3 – which is currently under development).

S4 will also allow enterprise and government customers to scale their infrastructure platforms in this digital gateway region.

The S4 site is in Horsley Park, approximately 42km west of Sydney’s central business district and close to a major electricity substation as well as telecommunications, utilities and public infrastructure. The site covers approximately 124,000sqm.

This site is expected to accommodate a data centre facility capable of approximately 300MW of capacity. The facility is expected to house customers’ mission critical operation centres, administrative offices and collaboration spaces. S4 is expected to generate more than 500 new jobs during the development phase over several years.

Nextdc explained that it will progressively settle on the land parcels comprising the S4 site as they are made ready for development between the second half of FY24 and the first half of FY21.

Management comments

Nextdc CEO and managing director Craig Scroggie said: “The demand for premium quality data centre assets in digital gateway regions such as Sydney continues to reflect the growth trajectory of technology infrastructure over the next decade. Nextdc looks forward to being able to offer its customers dual availability zone solutions across its existing S1 and S2 Macquarie Park and S3 Gore Hill metropolitan data centres as well as this new S4 hyperscale campus in Western Sydney.”

Summary thoughts on Nextdc and the share price

Nextdc is a very interesting business which is exposed to strong digitalisation tailwinds. However, I’m not sure how profitable Nextdc can become and how strong its economic moat is.

For that reason, there are other ASX growth shares that I’d rather be looking at for my portfolio right now.

$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.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content