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Nextdc vs Macquarie Technology shares: Which data centre stock could help you ride the AI boom?
It's an exciting time for investors watching the AI-driven digital infrastructure buildout, with Nextdc Ltd (ASX: NXT) and Macquarie Technology Group Ltd (ASX: MAQ) standing out as two of the most prominent data centre operators on the ASX. With data demand ramping up, particularly in AI and cloud, it's worth weighing up Nextdc vs Macquarie Technology Group shares for a potential investment.
The case for Nextdc
Nextdc is Australia's largest pure-play data centre provider, running a growing network of high-security, highly-connected facilities across Australia, New Zealand, and Southeast Asia. Focused on providing the physical infrastructure (colocation, secure power, cooling, and interconnection), Nextdc appeals to a vast range of enterprise, telecom, and cloud customers needing mission-critical, scalable hosting for their data and applications. According to its most recent public description, Nextdc was servicing over 1,700 customers as of December 2022, highlighting a broad client base.
Three notable points stand out from Nextdc's data:
- Market capitalisation of $7.77 billion, making it by far the biggest listed data centre specialist on the ASX.
- A very high price-to-earnings (P/E) ratio of 85.33, indicating a growth profile that investors are paying up for.
- No dividend yield, with the company ploughing cash back into expanding its facilities, which is typical for infrastructure stocks chasing secular growth themes like AI.
The case for Macquarie Technology Group
Macquarie Technology Group formerly Macquarie Telecom, has evolved into a leading provider of data centres, cloud, cybersecurity, and telecom solutions for medium and large Australian organisations, including many government agencies. Whereas Nextdc focuses solely on data centre infrastructure, Macquarie augments its operations with managed services and compliance-oriented offerings – a drawcard for highly regulated sectors.
For investors, here are a few key figures:
- Market cap sits at $1.33 billion – considerably smaller than Nextdc, but still a well-established player.
- P/E ratio of 42.10, materially lower than Nextdc's.
- Like Nextdc, no current dividend yield, but Macquarie did pay franked dividends several years ago (as high as 100% franked). However, none have been declared in recent years, so income investors shouldn't expect ongoing payouts based on the latest figures.
Valuation comparison
With both companies exposed to data centre demand, their fundamentals offer some clear contrasts:
| Metric | Nextdc | Macquarie Technology Group |
|---|---|---|
| Market Cap | $7.77 billion | $1.33 billion |
| P/E Ratio | 85.33 | 42.10 |
| Earnings per Share (EPS) | 0.122 | 1.282 |
| Dividend Yield | 0.00% | 0.00% |
| Dividend History | N/A | Occasional, most recent in 2018 |
Note: Both companies are not paying dividends right now, despite Macquarie Technology Group's previous history. Neither company offers franking for any potential future dividends except Macquarie, which has paid fully franked dividends in the past.
Nextdc's much larger size and loftier P/E ratio suggest investors are paying a bigger premium for its growth prospects compared to Macquarie Technology Group. Macquarie also produces a higher recent EPS based on the data supplied.
Recent share price momentum
Comparing recent market performance up to 7 October 2026:
- Nextdc closed at $10.23 per share, down 1.73% on the day and with a year-to-date (YTD) return of -15.6%.
- Macquarie Technology Group closed at $51.69 per share, down 1.37% on the day, and with a YTD return of -21.2%.
Both shares have struggled year to date, with Macquarie Technology Group underperforming Nextdc over this period.
Which is the better buy?
If I had to pick between Nextdc and Macquarie Technology Group shares to ride the AI boom, I'd lean towards Nextdc . Here's why: although Nextdc trades on a much higher P/E ratio, it controls the largest data centre footprint on the ASX, is focused on customer growth across a massive range of sectors, and is clearly attracting a valuation premium because investors see longevity and scale advantages in its business.
While Macquarie Technology Group is a quality player with solid managed services and an impressive earnings per share number, it's a smaller operator, and its lower valuation likely reflects both its diversified business model and the scale gap. I also notice neither company currently pays dividends, so my interest is solely about growth runway and leadership in AI infrastructure – and Nextdc fits that bill with its expanding platform and ambitious reinvestment strategy.
Multi-year historical growth rates would add more context, but based on the figures at hand, my pick would be Nextdc for investors seeking exposure to the surging demand for AI-powered cloud and data centre services.
