NextDC wins $35 million Federal Government contract

NextDC has inked a $35 million deal with the Federal Government for the provision of data center services.

The company says the six year contract, which includes options for extension, is 'a very momentous occasion for us because it is testament to the quality of NextDC's DCaaS offering'.

"Our in-house engineering and project management expertise is a fundamental point of difference and the outstanding consultative work our team did in designing the data center infrastructure to support the Governments' unique requirements and delivery times was a significant component in winning this deal," NextDC says.

The $35 million value is before factoring in any revenue derived from power recharge, with revenue recognition to commence in the second quarter of FY16 and ramp up to full billing over 24 months.

NextDC says due to the 'critical and sensitive' nature of the infrastructure, the department, location and use will not be made publically available.

The company says it will draw on its Project Plus engineering capacity for the contract. Project Plus allows NextDC to increase MW capacity without needing additional land, building or fit out of additional data halls.

The announcement of the win comes as NextDC also announces it is providing private, high-speed connections to Microsoft Azure and soon Office 365, via Microsoft Azure ExpressRoute for the first early access customers at its M1 Melbourne data center.

The move is the first stage of NextDC's national rollout of the new service.