NEXTDC Rides AI Wave with Record Order Book and $5.9B Liquidity to Fund Future Growth

NEXTDC is now in a very good position for future growth because fundamentals have improved and stock has regained momentum over the past one month.

NEXTDC Limited (ASX: NXT) 

on 22 April 2026 announced the successful completion of its Institutional Entitlement Offer at an offer price of $12.70 per new share. The Institutional Entitlement Offer raised gross proceeds of about $1 billion. The fully underwritten retail component of the Entitlement Offer is expected to raise $0.5 billion. The Retail Entitlement Offer will open on 27 April 2026 and close on 11 May 2026.

The company has built a strong position as a key infrastructure provider for the digital economy and the stock has risen 15.4% in the past one month as investor confidence has now started to improve.

Strong Demand and Record Contracted Growth

A major highlight from the latest update is the sharp rise in contracted utilisation which increased by 60% to 667MW which shows strong customer demand driven by AI and hyperscale computing needs. The forward order book also expanded by 83% to 544MW which indicates certainty for future revenue and long-term growth.

This rise in demand is supported by structural industry trends where higher AI adoption is increasing power density needs and pushing demand for large scale data centre capacity. Over the next few years, this order book is expected to convert into revenue and EBITDA which will support a steady pipeline of earnings growth.

Financial Strength and Capital Position

The company has reaffirmed its FY26 guidance with expected EBITDA between $230 million and $240 million. The company has also planned significant capital expenditure between $2.7 billion and $3 billion in FY26 because it aims to capture future demand opportunities. This high capex needs will provide barriers to entry for future competitors which will be hard to replicate.

The balance sheet has been strengthened through a $1.5 billion entitlement offer along with a $1.7 billion hybrid securities raise which will provide strong financial flexibility. This approach is expected to result in pro-forma liquidity of about $5.9 billion which ensures the ability to execute large projects without financial pressure.

Long-Term Growth Outlook

The company is well positioned to benefit from a structural supply demand gap in data centres because industry forecasts point to a large capacity shortfall in the coming years. Large projects such as the S4 Sydney development are being accelerated with around $1.5 billion invested to meet rising customer commitments.

Its role as a trusted partner for global cloud providers and enterprises continues to grow which will strengthen its competitive advantage in this rapid growth market. As utilisation converts into earnings, contracted EBITDA is expected to exceed $1 billion over time.

The combination of strong demand a record order book and disciplined capital deployment has positioned NEXTDC as a high growth infrastructure player in the AI driven digital economy. With time, execution will also improve and contracted capacity will convert into earnings.

NXT has been one of the best growth stories on ASX for a while and the company is well placed to generate sustained long-term value for shareholders.

(Source: Company Announcements)