NexiDC: evaluating partnering with third-party capital

NexiDC: evaluating partnering with third-party capital

NextDC Evaluates Strategic Partnerships with Third-Party Capital to Fuel Expansion

Australian data center operator NextDC is actively pursuing joint ventures (JVs) with third-party private capital to accelerate its growth strategy, particularly in Sydney and international markets. The company announced plans to establish a multi-billion-dollar JV targeting 850MW of new data center capacity in Western Sydney over the next decade, with a focus on securing AU$15 billion (US$9.8 billion) in funding. NextDC aims to retain a minority stake while maintaining operational control, positioning the JV as a scalable model for future collaborations.

The initiative, dubbed "Project Berlin," involves engaging financial advisors Morgan Stanley and Cadence Advisory to identify long-term partners. This approach aligns with industry trends emphasizing third-party capital as a means to access deep pools of private equity, reducing reliance on internal funding for large-scale infrastructure projects. NextDC's current portfolio includes six operational or under-development data centers in Sydney, totaling nearly 500MW of capacity, with plans for S4 and S7 sites to expand this footprint.

Financially, NextDC reported FY2025 revenue of AU$427.2 million, up 6% year-over-year, alongside AU$200 million in EBITDA and a AU$60 million loss before tax. Capital expenditure for FY2025 reached AU$1.699 billion, with projections of AU$1.8–2 billion in 2026 as the company advances its development pipeline, which exceeds 3GW globally.

Internationally, NextDC has partnered with CBRE I.M. to develop a 30MW liquid-cooled data center in Tokyo, Japan, with construction slated to begin in December 2025 and completion by 2030. The company is also evaluating sites in Bangkok, Johor, Kuala Lumpur, and Singapore, signaling a broader regional expansion strategy.

CEO Craig Scroggie emphasized that FY2026 will focus on strategic investments to solidify NextDC's position in the digital infrastructure sector, driven by demand from the "fourth industrial revolution". The proposed Sydney JV and international projects underscore NextDC's reliance on third-party capital to balance growth ambitions with financial sustainability.

(https://www.datacenterdynamics.com/en/news/nextdc-seeks-partner-for-850mw-data-center-jv-in-sydney-australia/): https://www.datacenterdynamics.com/en/news/nextdc-seeks-partner-for-850mw-data-center-jv-in-sydney-australia/