NextDC wins $60 million-plus major contract

NextDC wins $60 million-plus major contract

Expects to make much more money as the company moves past break-even

Independent datacentre operator, NextDC, has entered a contract for the provision of datacentre services to an undisclosed "leading corporation."

The unnamed customer has contracted for capacity across NextDC’s facilities, with the option to extend the five-year deal.

NextDC was unable to reveal the name of the company due to confidentiality requests from the customer for competitive reasons, NextDC chief executive officer (CEO), Craig Scroggie, said. He also declined to comment further on the services, the industry and other details.

Scroggie said the initial commitment from the deal is about about $60 million, excluding power charges, services, cross-connects, and “many other things NextDC derives revenue from.”

“When you sign a very large-scale client, it brings your cash flow break-even forward,” Scroggie said. “It means [NextDC] will make a lot more money than we thought we would in the existing time frame.”

In addition, because NextDC is vendor neutral, he said the win will enrich its ecosystem due to the range and diversity of customers the Customer is expected to bring.

Due to the large value of the deal, the operator is being forced to rapidly upscale both its Melbourne and soon to be launched Sydney facilities. Its 12 megawatt Melbourne datacentre is currently fitted out to 6 MW; the deal will see NextDC accelerate the fit-out of the next 4 MW to bring it to 10.

Its Sydney facility, which is scheduled for a September launch, was planned to stand at 3.1 MW, but another 3 MW will be added as soon as possible.

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Tags ASXNextDCcontractCraig Scroggiedatacentre operator

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