NextDC reports 60% increase in contracted utilisation growth and higher capex guidance

NextDC's contracted utilisation and future pipeline surged with higher FY26 capex guidance, supported by strong new customer wins.

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The NextDC Ltd (ASX: NXT) share price is in focus after the company reported a 60% increase in contracted utilisation to 667MW as at 31 March 2026, alongside a significant boost in its Forward Order Book and revised capex guidance.

An investor looks happy holding a finger to his computer screen while holding a coffee cup in a home office scenario.

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What did NextDC report?

  • Contracted utilisation rose by 250MW (60%) to 667MW since 31 December 2025
  • Forward Order Book climbed 247MW (83%) to 544MW as at 31 March 2026
  • FY26 capital expenditure guidance increased to A$2.7–3.0 billion (was A$2.4–2.7 billion)
  • Net revenue and underlying EBITDA guidance for FY26 remain unchanged
  • Customer contract wins accelerated planned inventory and development at S4 data centre

What else do investors need to know?

NextDC's recent customer contract wins are driving both increased utilisation and ambitious growth plans, especially at its S4 data centre. The company is investing in long-lead items to support rapid expansion, with higher capex guidance reflecting this acceleration.

Importantly, the pro forma Forward Order Book is expected to translate into billing, revenue, and EBITDA growth progressively from FY26 through FY30. NextDC remains focused on sustainability, operating Australia's only network of Tier IV certified data centres and maintaining carbon-neutral operations.

What's next for NextDC?

NextDC is set to continue its expansion strategy, supported by a robust order book and ongoing customer demand. Management's capex increase aligns with a push to grow operational capacity, particularly at the new S4 facility.

Investors can look to future billing and earnings growth as the contracted pipeline converts over the coming years, while the company maintains its commitment to efficiency and sustainability across its national data centre network.

NextDC share price snapshot

Over the past 12 months, NextDC shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 14% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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