Kalkine: ASX 200 Rises as NextDC Expands Contracted Utilisation in May

Highlights

• NextDC Limited (ASX:NXT) reports an increase in contracted data centre utilisation driven by new customer contracts

• Kuala Lumpur’s KL1 site achieves a milestone ahead of its official launch

• New contract revenues anticipated to begin ramping from fiscal 2027

Shares within the technology sector moved with renewed interest after data centre services provider NextDC Limited (ASX:NXT) announced a significant increase in contracted data centre utilisation. This update coincides with a broader positive tone across the Australian share market, with the ASX 200 index showing strength amidst international developments and domestic business updates. The company’s focus on sovereign and AI-driven digital infrastructure across the Asia-Pacific region has continued to support its expansion strategy.

The surge in utilisation figures during May reflects growing customer demand for scalable data centre capacity, aligning with increased regional digital transformation activities.

Contracted Utilisation Up as New Deals Secured

NextDC reported a rise in contracted utilisation of its data centres following the signing of new customer contracts. This growth reflects sustained demand from enterprises requiring high-performance computing environments, cloud services, and interconnection capabilities. The expansion in contracted capacity aligns with the company’s ongoing infrastructure rollout across key locations.

Recent customer agreements have contributed to an uplift in capacity across multiple sites, underscoring the importance of efficient, scalable data centre solutions in supporting enterprise-level digital operations. These increases are expected to be progressively supported by the commissioning of new data halls currently under construction.

KL1 Site Achieves Strategic Milestone

A standout contributor to the uplift was the KL1 facility in Kuala Lumpur. The site, which remains under development, now includes contracted capacity ahead of its scheduled launch. According to NextDC, KL1 represents a foundational step in its broader Asia strategy, positioning the facility as a cornerstone of AI-native infrastructure across regional markets.

The early securing of contracts for KL1 indicates confidence in the site’s capabilities, with its planned capacity expected to cater to a variety of data-intensive industries. Its strategic location in Kuala Lumpur supports its role as a digital hub for Southeast Asia, providing access to connectivity infrastructure and regional partners.

Revenue from New Contracts Set for Future Ramp

NextDC highlighted that revenue linked to the recently signed contracts is expected to begin ramping in the fiscal year following the completion and operational readiness of additional data halls. Full revenue contribution from these new arrangements is anticipated across subsequent fiscal periods.

These contracts form part of a longer-term growth strategy that leverages NextDC’s network of data centres to meet the rising demand for secure and scalable infrastructure. As facilities are brought online and fit-outs completed, the integration of contracted workloads will drive utilisation across the broader portfolio.

Regional Expansion Emphasised by Management

The company’s management noted that KL1 symbolises a broader push to deliver sovereign digital infrastructure to meet regional demand. The focus remains on building and scaling AI-ready data centre environments that align with evolving enterprise requirements. This includes accommodating high-density workloads and delivering solutions tailored to complex hybrid-cloud strategies.

NextDC Limited (ASX:NXT) continues to develop a diversified portfolio of assets positioned across high-growth locations. The increase in contracted utilisation is viewed within the context of this expansion strategy, as additional sites and infrastructure investments reinforce the company’s market presence across the Asia-Pacific region.