NEXTDC has announced plans to raise A$1.5 billion ($1.07 billion) to accelerate the rollout of its S4 Sydney data centre and meet initial delivery timelines.
The capital raise will be executed through an entitlement offer, allowing existing shareholders to buy new shares at A$12.70 each, at a ratio of about 1 new share for every 5.4 shares held. La Caisse has committed an additional A$700 million, following its earlier A$1 billion investment this month.
“This is a unique opportunity to materially expand NEXTDC’s contracted capacity and de-risk the company’s Western Sydney developments ahead of potential strategic partnership transactions with private capital partners from 2027,” said Craig Scroggie.
The company reported strong demand, with pro forma contracted utilisation rising by around 60% to 667 megawatts (MW) as of March 31, compared to end-December 2025. This reflects growing customer commitments and increasing capacity bookings.
To support this expansion, NEXTDC has raised its FY2026 capital expenditure by A$300 million, taking the total range to A$2,700 million–A$3,000 million. The increase will fund faster inventory build-out and equipment procurement for the S4 facility.
The S4 data centre, located in Horsley Park, is expected to deliver a total capacity of 350 MW, positioning it as a key infrastructure asset in Western Sydney’s digital ecosystem.
NEXTDC also confirmed it is exploring capital partnership structures with third-party investors for its Western Sydney developments as projects advance.
Analysts at Citi noted that the equity raise and expanded hybrid issuance reflect strong market demand and underline NEXTDC’s ability to secure large hyperscale contracts.
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