The NextDC Ltd (ASX: NXT) share price is charging higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) data centre operator and developer closed yesterday trading for $12.66. In morning trade on Tuesday, shares are changing hands for $13.18 apiece, up 4.1%.
For some context, the ASX 200 is up 0.1% at this same time.
Here's what's grabbing investor interest today.
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NextDC share price leaps on new contract wins
The NextDC share price is marching higher on the heels of an operational update.
NextDC reported that after recent customer contract wins, its pro forma contracted utilisation as at 31 March had increased by 52MW, or 30%, to 228MW since 31 December.
The ASX 200 tech stock said the new contract wins increased its pro forma forward order book at 31 March by 54%, or 45MWm to 127MW since 31 December. That represents a record result for the company.
The company's operations in Victoria led the charge. Its Victorian data centre ecosystem saw the largest AI deployments recorded in NextDC's data centre portfolio to date. The Victorian pro forma contracted utilisation at 31 March was 114MW. That represents 161% of built capacity (70.5MW) at 31 December.
Now, the company will need to wait a while before banking revenue from these new contracts.
NextDC said it expects revenue recognition for the majority of the new customer contract wins to commence during FY 2027. First it needs to complete and commission more data centre halls. The company expects to realise a full revenue run rate from these contracts from FY 2028 onwards.
What did management say?
Commenting on the strong results helping lift the NextDC share price today, CEO Craig Scroggie said, "We are very pleased to have recorded the largest increase in contracted utilisation in the company's history."
Scroggie added:
The rise of artificial intelligence and high-performance computing is reshaping the data centre industry at speed. Hyperscale customers are scaling AI-native infrastructure at unprecedented levels.
What's next for NextDC?
Looking at what could impact the NextDC share price in the months ahead, the company increased its full-year FY 2025 capital expenditure guidance by $100 million. The increased capex will be used to build and deploy capacity for the new customer contract wins.
The full year capex guidance now stands at $1.4 billion to $1.6 billion, up from the prior $1.3 billion to $1.5 billion.
NextDC maintained its FY 2025 net revenue and underlying earnings guidance.
As at 31 December, the ASX 200 data centre stock had cash and undrawn debt facilities of $2.5 billion.
With today's intraday gains factored in, the NextDC share price is down 12% in 2025.
