NextDC Secures AU$2B Funding For Strategic Asia Expansion

• NextDC raises AU$2 billion, increasing its total debt funding to AU$5.1 billion for capital spending and data center development.
• Secures 16MW of new contracted capacity, with the largest deal from a 10MW hyperscale customer in Kuala Lumpur.
• KL1 data center in Malaysia, part of NextDC's Asia expansion, is scheduled to go live in early 2026.

NextDC, a data center operator in Australia, has added further debt financing of AU$2 billion ($1.42bn) and announced that it has also won new business of 16MW capacity.

The finance puts the overall debt funds at NextDC at AU$5.1 billion ($3.3bn). The money will be used by the company to help finance mainly capital spending needs linked to new customer contract wins and development of ongoing data centers.

The debt facility is structured as a consortium of banks, the Australia and New Zealand Banking Group, Commonwealth Bank of Australia, MUFG bank, National Australia Bank, Royal Bank of Canada, and The Hong Kong and Shanghai Banking Corporation, Sydney branch with a maturity date at December, 2030.

In a separate press release, NextDC commented that contracted capacity across its data centres was up by 16MW at the end of May on new contracts. The number of deals struck by the company stands at 244MW, as compared to 7 percent last month.

“The largest increase has come from NextDC’s data center under development in Kuala Lumpur, Malaysia, which now totals 10MW, representing 15 percent of its planned capacity,” the company said. The capacity has been taken by an unnamed hyperscale customer.

Later in the year, the Kuala Lumpur facility, KL1, is set to become online in early 2026 and the facility is a strategic milestone, according to Craig Scroggie, CEO and managing director of NextDC, to expand in Asia.

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“Securing our first 10MW hyperscale customer ahead of launch in Kuala Lumpur is a strong endorsement of our execution capacity and validates KL1’s role as AI-native digital infrastructure,” Scroggie said.

KL1 will ultimately provide 65MW of space, and comprises part of NextDC expansion to Asia. It now has planned-out or under consideration within Tokyo, Japan; Bangkok, Thailand; and Singapore; and even Kuala Lumpur and Johor in Malaysia.