NEXTDC Ltd (ASX: NXT) has just delivered an FY26 result that strengthens my confidence in its long-term growth story.
The company is investing heavily to meet rising demand for data centre capacity, and artificial intelligence is giving that opportunity another powerful push.
For me, the latest numbers support a buy.
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The forward order book is the standout
I think the most important figure in NEXTDC's FY26 result was not revenue or profit.
It was the 565MW forward order book, up sharply over the year. This represents contracted capacity that has not yet started billing, and every megawatt is backed by a binding customer commitment.
I think this gives investors much better visibility over where growth can come from next.
NEXTDC expects 197MW of that capacity to begin billing in FY27 and another 221MW in FY28. Together, that would convert almost three-quarters of the current forward order book within two years.
The company estimates its existing contracted utilisation could eventually generate more than $1 billion of EBITDA, without assuming any additional customer wins.
For me, that shows just how much growth is already locked into the pipeline.
Artificial intelligence is changing the scale of demand
The artificial intelligence (AI) boom is a major reason I think NEXTDC can keep growing beyond those existing commitments.
Training and running advanced AI models requires enormous amounts of computing power, which in turn creates demand for data centres capable of handling high-density workloads.
NEXTDC says AI, cloud providers, hyperscalers, and newer specialised cloud operators are all contributing to strong demand. Its facilities are being designed for advanced computing environments, including the higher power densities and cooling requirements associated with AI infrastructure.
This is not simply a case of hoping AI demand eventually arrives. NEXTDC's contracted utilisation has already climbed to 740.1MW on a pro forma basis, more than triple the level a year earlier.
I think that provides tangible evidence that customers are committing significant capital to this infrastructure now.
FY27 could show the next step
Management expects FY27 net revenue to rise by 52% to 58%, while underlying EBITDA is forecast to increase by 55% to 65%.
Those are substantial growth rates for a company already operating data centres across Australia and expanding internationally.
There are risks. NEXTDC expects to spend between $5.25 billion and $5.75 billion in FY27, making execution, financing, construction, and access to power important areas to watch.
But much of that spending is being directed towards capacity customers have already contracted.
Foolish takeaway
I would buy NEXTDC shares following the FY26 result.
The AI boom is creating enormous demand for computing infrastructure, and NEXTDC now has a record amount of contracted capacity waiting to become revenue.
The investment will require patience as the company builds that capacity, but I think the scale of the opportunity has become much clearer.
If NEXTDC delivers on its current pipeline and keeps winning AI-related demand, I believe it could be a considerably larger business by the end of the decade.
