DXN Expands Into DCaaS With Strategic Satellite Deal Following NT Site Acquisition

3 min read | April 16, 2025 01:11 AM EDT | By Team Kalkine Media

Highlights

  • DXN signs first DCaaS contract with US-based satellite firm
  • $3.6 million per site contract, includes build and managed services
  • Expansion supports long-term modular data centre growth strategy

Modular data centre solutions provider DXN Ltd (ASX:DXN) has taken a major step forward in its business model by securing its first data centre as a service (DCaaS) contract. This milestone comes shortly after the company exercised an option to acquire the Secure Data Centre Darwin site in the Northern Territory in late March 2025.

The agreement has been signed with a US-headquartered global satellite earth station operator and involves the design, construction, and management of prefabricated technical infrastructure at the Darwin location. This marks a strategic shift as DXN transitions from delivering modular data centres as standalone products to offering ongoing managed services.

Under the terms of the deal, DXN will receive an upfront payment of approximately $0.6 million for the initial design and build. Additionally, the agreement includes monthly recurring revenue for ongoing services, bringing the total contract value to around $3.6 million per site. There is also a renewal option built into the contract, allowing for long-term collaboration and future scalability.

Design work for the first site in regional Australia is already underway. The US-based partner has indicated the possibility of expanding the agreement to include multiple additional sites across the country, reflecting confidence in DXN’s technical capabilities and its modular approach.

DXN’s managing director, Shalini Lagrutta, highlighted the alignment between this deal and the company’s long-term goals. The focus, she explained, is on evolving from simply building and handing over modular data centres, to providing full lifecycle services including ongoing maintenance and operation.

She also noted that advancements in artificial intelligence are driving increased demand in the space and satellite sectors. These technologies are enabling faster image analysis, predictive maintenance, and autonomous operations, making the industry more efficient and scalable. This, in turn, is accelerating the need for reliable and responsive edge data centre infrastructure, a market where DXN is well-positioned.

The latest development positions DXN (DXN) to benefit from growing demand in both the edge computing and space technology sectors, particularly across regional areas in Australia. The company’s DCaaS model provides a recurring revenue stream and strengthens its foothold in mission-critical infrastructure support.

As the need for agile, secure, and scalable data solutions increases, particularly in remote regions, DXN is aligning itself to become a key player in the future of modular edge data centre services.


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