NEXTDC (ASX:NXT) has successfully priced a $1.1 billion convertible notes offering as it increases investment in new data centre capacity to meet growing demand for AI and cloud computing infrastructure.
The offering consists of 1.75 per cent convertible notes due in 2031, with NEXTDC expecting to receive net proceeds of approximately $1.006 billion.
The new funding will support NEXTDC’s Australian data centre development pipeline, which is expanding as demand for computing capacity increases. The company reported 740.1MW of contracted utilisation at the end of FY26, reflecting a substantial increase over the year.
NEXTDC has been investing heavily to bring additional capacity online. Earlier this year, the company outlined a $2.2 billion capital plan following new customer contracts and increased demand for AI-ready infrastructure.
The investment comes as Australia’s data centre sector expands to accommodate the computing requirements of AI. Nvidia this week announced plans to work with Australian infrastructure providers, including NEXTDC, CDC, AirTrunk and Firmus, to support up to 2GW of additional AI data centre capacity in Australia.
NEXTDC is also expanding internationally. In May, the company opened its first overseas data centre in Kuala Lumpur, forming part of a planned $1 billion investment in the Malaysian facility.
