NextDC targeting Asia growth

NextDC bucked general weakness in the technology sector on Friday to end the week marginally higher for the session. The $6 billion data centre giant held its annual general meeting where management spoke about current challenges and the company’s expectations for the future.

CEO, Craig Scroggie noted that while travelling across Asia has proven to be challenging during COVID-19, NextDC continues to look at its opportunities in the Asia market, with the team actively reviewing expansion opportunities in the world’s fastest-growing regions. A major priority is securing land in key markets that will drive the next decade of digital growth in Asia.

At the event, NEXTDC also provided an update on how it is performing in relation to its guidance for FY22. Positively, the company is on track to achieve its guidance this year. Reaffirming data centre services revenue in the range of $285 million to $295 million representing 16% to 20% growth. Underlying EBITDA is expected in the range of $160 million to $165 million at 19% to 23% growth, while capital expenditure in the range of $480 million to $540 million. Management noted that this is being driven by strong growth in recurring data centre services revenue, underpinned by long-term customer contracts.

Management also spoke about the increasing importance of data, referring to it as the new oil. Mr Scroggie said: “Data is the world’s most valuable commodity, playing a core role at the heart of commerce, government and community. Its rise is best demonstrated by the outstanding success of companies like Amazon, Netflix, Google, Microsoft, Apple and Atlassian to name a few. We can be sure there will also be new start-ups and innovations that will rise as rapidly as these front-runners. The beauty of building an infrastructure platform with the geo-diversity and scalability that we have is that it caters to all.”