Australian data centre operator NEXTDC to raise $795 mln for AI infrastructure

Australia's NEXTDC said on Wednesday it seeks to raise A$1.1 billion ($795.63 million) through convertible notes, its third fundraising in just over four months, as the data centre operator ramps up investment in AI infrastructure.

Here ‌are some ⁠details:

* ⁠The notes will mature on September 17, 2031, ​and carry a holder put option in September 2029. ​The initial conversion price will be set at a 32.5%-37.5% premium to the reference share price.


* ​NEXTDC also intends to ⁠enter capped ‌call transactions with an indicative cap ​price ​70% above the reference share price ⁠to reduce potential dilution.

* Proceeds will fund ​the ongoing expansion of local data centre ​pipeline, cost of the capped call deals and transaction costs, with the remainder for general corporate use.

* NEXTDC expects fiscal 2027 capital expenditure of A$5.25 billion to ‌A$5.75 billion, up about 55% to 70% from fiscal 2026 spending, as it ​boosts investment ​to meet ⁠AI-driven demand.

* The capital raising comes as Australian data centre developers face growing constraints on power and water access that threaten to slow a nationwide data centre expansion.

* NEXTDC shares ended 2.2% higher at A$12.79 on Wednesday.

($1 = 1.3826 Australian dollars)