NextDC penetrates Perth

NextDC penetrates Perth

It has entered into a conditional agreement to acquire a vacant lot in Perth and expects to complete the purchase by July

Datacentre builder NextDC (ASX:NXT) has taken the wrappers off its plans to expand its business beyond the east coast into Western Australia.

The ASX-listed company has entered into a conditional agreement to acquire a vacant lot in Perth and expects to complete the purchase by July.

It is subject to NextDC completing a satisfactory due diligence process.

The new site is located about 11km north of the Perth CBD.

In a statement, NextDC CEO, Bevan Slattery, said it was close to a major electricity substation, telecommunications and public infrastructure.

“The expansion is driven by anticipated customer demand for a carrier and systems integrator neutral datacentre in WA,” Slattery said. “Perth is a strategy location for NextDC after a comprehensive evaluation of a number of alternative sites. We have selected this site due to its location, access to significant power and other infrastructure that we trust will be validated through the formal due diligence process to be conducted over the next two months.”

Subject to the final design, the new facility will feature 3000sqm of high density technical space along with an ancillary office and plant space. It is expected to go live in the middle of next year, but this is subject to relevant approvals.

Recently NextDC successfully completed its Share Purchase Plan (SPP) offer, raising about $15.3 million. After a conditional placement of $16.8 million next week, the company will have more than $100 million in equity and about $75 million in cash at bank. This provides the significant funding capacity to address increasing customer demand for datacentre and related services.

The land acquisition will be funded through incremental proceeds from the SPP.

The addition of Perth will see the company hold a strategic footprint across major growth markets in Australia as the uptake of cloud computing gathers momentum.

The combination of Sydney, Melbourne, Brisbane and Perth sites equates to more than 15,000sqm of high density technical space.

It recently secured a new datacentre site situated in Macquarie Park, Northern Sydney.

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Tags expansionPerthdatacentresNextDCNextDC CEO Bevan Slattery


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