Shares of Australian data centre operator NextDC surged more than 42 per cent on Thursday after Goodman Group and US-listed Digital Realty moved to acquire stakes of up to 9.9 per cent in the company, a move the NextDC board described as 'opportunistic'.
In a regulatory filing on the same day, NextDC said the two companies conducted an aftermarket bookbuild Wednesday, seeking shares at A$9.50 apiece. The board called the move 'opportunistic', noting that it came two weeks after the company disclosed a power supply delay at its M3 Melbourne data centre and revised its fiscal 2027 guidance. NextDC said it was not aware of the outcome of the share purchase. Goodman and Digital Realty told investors they had no current intention of making a takeover bid, but reserved the right to do so.
The rally came against a backdrop of weakness in US data centre stocks overnight. Shares of CoreWeave fell about 9 per cent, while Iren dropped roughly 11.2 per cent on Wednesday. The sell-off followed sweeping Democratic victories in the US midterm elections, which raised expectations of tighter scrutiny and potential restrictions on data centre development that could slow the AI infrastructure buildout.
Analysis
Why This Matters
- The stake purchases by major property and data centre players signal confidence in Australian data centre infrastructure despite headwinds in the US market.
- The share surge indicates market sensitivity to moves by large investors like Goodman and Digital Realty, and potential consolidation in the sector.
- The US midterm outcome could affect global data centre investment, with increased regulatory scrutiny possibly shifting investment flows to markets like Australia.
Background
NextDC is an Australian data centre operator. Its M3 Melbourne facility recently faced a power supply delay, leading to revised guidance for fiscal 2027. The aftermarket bookbuild by Goodman and Digital Realty sought shares at A$9.50.
Key Perspectives
NextDC board: called the stake purchases 'opportunistic', noting they came shortly after the company's disclosure of a power supply delay and guidance revision.
Goodman Group and Digital Realty: told investors they have no current intention of making a takeover bid but reserved the right to do so.
What to Watch
- Whether Goodman and Digital Realty increase their stakes beyond 9.9 per cent or make a takeover bid.
- The impact of US regulatory changes on data centre investment globally and in Australia.
- NextDC's response to its power supply issues and any impact on its future guidance.
Checked
10 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedNextDC shares surged more than 42 per cent on Thursday.US Top News and Analysis: “Shares of Australian data center operator NextDC surged more than 42% Thursday”
- SupportedGoodman Group and Digital Realty moved to acquire stakes of up to 9.9 per cent in NextDC.US Top News and Analysis: “Goodman Group and U.S.-listed data center operator Digital Realty moved to acquire stakes of up to 9.9% in the company.”
- SupportedNextDC’s board described the move as “opportunistic.”US Top News and Analysis: “NextDC's board called the move "opportunistic,"”
- SupportedGoodman and Digital Realty conducted an aftermarket bookbuild on Wednesday, seeking shares at A$9.50 apiece.US Top News and Analysis: “NextDC said the two companies conducted an aftermarket bookbuild Wednesday, seeking shares at A$9.50 apiece.”
- SupportedThe board noted that the move came two weeks after NextDC disclosed a power supply delay at its M3 Melbourne data centre and revised its fiscal 2027 guidance.US Top News and Analysis: “NextDC's board called the move "opportunistic," noting that it came two weeks after the company disclosed a power supply delay at its M3 Melbourne data center and revised its fiscal 2027 guidance.”
- SupportedNextDC said it was not aware of the outcome of the share purchase.US Top News and Analysis: “The company said it was not aware of the outcome of the share purchase.”
- SupportedGoodman and Digital Realty told investors they had no current intention of making a takeover bid, but reserved the right to do so.US Top News and Analysis: “Goodman and Digital Realty told investors they had no current intention of making a takeover bid, but reserved the right to do so.”
- SupportedCoreWeave shares fell about 9 per cent and Iren shares fell roughly 11.2 per cent on Wednesday.US Top News and Analysis: “Shares of CoreWeave fell about 9%, while Iren dropped roughly 11.2% on Wednesday.”
- SupportedThe sell-off followed sweeping Democratic victories in the US midterm elections.US Top News and Analysis: “The sell-off followed sweeping Democratic victories in the U.S. midterm elections”
- SupportedThe victories raised expectations of tighter scrutiny and potential restrictions on data centre development that could slow the AI infrastructure buildout.US Top News and Analysis: “which raised expectations of tighter scrutiny and potential restrictions on data center development that could slow the AI infrastructure buildout.”