The NextDC Ltd (ASX: NXT) share price is jumping on Tuesday morning.
At the time of writing, the ASX 200 stock is up 8% to $14.26.
Why is the NextDC share price jumping?
Investors have been bidding the data centre operator's shares higher this morning following the release of another positive update.
As a reminder, last month, NextDC surprised the market with an update on new customer contract wins. The good news is that since then, the company has been busy signing even more deals.
According to the release, following recent customer contract wins, the ASX 200 stock's pro forma contracted utilisation as at 31 May 2025 has increased by 16MW (7%) to 244MW since the last update on 6 May.
The release notes that largest increase in contracted utilisation has come from NEXTDC's data centre under development in Kuala Lumpur, Malaysia (KL1). Its contracted utilisation now totals 10MW, representing 15% of its planned capacity.
The KL1 facility is scheduled to go live in early calendar 2026 and is being constructed to achieve Uptime Institute Tier IV Certification for both Design and Construction. This represents the highest global standard for fault tolerance, resilience, and operational integrity.
Revenue to hit from FY 2027
Management highlights that most of the revenue from these new customer contract wins is expected to ramp up during FY 2027 following the completion and commissioning of additional data halls.
After which, the full revenue impact from these contracts will be realised from FY 2028 onwards. As a result of these new contract wins, the ASX 200 stock's pro forma forward order book has reached a record level of 135MW.
NextDC's CEO and managing director, Craig Scroggie, said:
KL1 represents a strategic milestone in NEXTDC's Asia expansion and reinforces our commitment to delivering sovereign, AI-native digital infrastructure across high-growth regional markets. Securing our first 10MW hyperscale customer ahead of launch in Kuala Lumpur is a strong endorsement of our execution capability and validates KL1's role as AI-native digital infrastructure.
This agreement builds on what was already a record year of new contract signings in our Australian business and reflects accelerating demand for high-density, AI-optimised infrastructure across the region.
Speaking about the future, Scroggie believes the company is well-placed to benefit from the next industrial era. He adds:
As the next industrial era takes shape in a rapidly evolving geopolitical landscape, AI infrastructure will be defined by five enduring pillars: speed, scale, security, sustainability and sovereignty. KL1 is purpose-built to meet that need – a scalable platform designed for critical AI workloads, where trust, proximity, and performance are non-negotiable.
This facility will play a foundational role in the AI economy – enabling the production of tokens, the generation of intelligence, and the infrastructure required to transform data into knowledge at scale.
The NextDC share price is now up almost 40% from its April low.
