Company Interview / NextDC confident of phenomenal growth after posting FY loss

Key points:

NextDC (ASX:NXT) posts strong sales growth amidst preliminary annual loss Up to $2 billion earmarked for new infrastructure projects and joint ventures Data centre expansion driven by AI and cloud computing trends, referencing Nvidia ($NVDA) - Sustainability initiatives focus on renewable energy and water recycling

NextDC (ASX:NXT) has reported a preliminary full year loss of $60.5 million, with revenue rising 6% to just over $427 million.

CEO Craig Scroggie points to record net new sales and capital investment in infrastructure as driving factors in what he describes as a milestone year. The business is forecasting significant billings growth through FY26 and FY27, banking on the rapid conversion of its record order book and ongoing demand for digital infrastructure.

Scroggie states that the company is planning to invest up to $2 billion this year to support growth, including new developments in Sydney and Tokyo through joint ventures. He references ongoing market demand for data centres, fuelled by the acceleration of cloud computing and artificial intelligence.

Addressing concerns about capital raising fatigue, Scroggie compares the current digital infrastructure transformation to past industrial revolutions, seeing it as unprecedented. The expansion aims to keep pace with companies like Nvidia ($NVDA), which Scroggie points out as an indicator of soaring AI-related demand. Sustainability remains a key focus, with initiatives around renewable energy and recycled water aimed at minimising environmental impact. Scroggie is optimistic about continued growth, highlighting rising AI deployments and demand from both domestic and regional markets, including Sydney, Melbourne, Adelaide, Kuala Lumpur and Auckland.