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NEXTDC pursues further growth on the back of rising data center demand

Thu, 18th Feb 2016
FYI, this story is more than a year old

NEXTDC is reporting substantial growth in data center services, with the company looking to pursue further growth on the back of rising demand.

‚ÄčThat data-center-as-a-service provider said the half-year ending 31 December 2015 saw revenue grow 51% to $42.1 million, up from $28 million for 1H15.

”NEXTDC has been going from strength to strength in the past six months, announcing new data center builds on the back of our Brisbane and Melbourne facilities nearing capacity, and the market's support of our capital raising in the last few months of 2015," says Craig Scroggie, NEXTDC CEO.

“This strong funding position allows us to pursue further growth supported by robust demand from new and existing customers,” he says.

The company announced in November 2015 its intention to pursue the development of new data centers in Brisbane (B2) and Melbourne (M2), adding up to 31MW of IT load capacity to its national network over time.

Scroggie says they are currently in advanced discussions in relation to short-listed sites for B2 and M2.

According to company, the FY16 capital investment in new facilities is expected to be between $20 million and $40 million.

Scroggie says based on 1H16 performance, current utilisation levels and expected new client contracts in 2H16, the company is expecting revenues trending towards $85 million to $90 million, up from $60.9 million.

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