NEXTDC Ltd (ASX: NXT) shares have endured a difficult few weeks.
Following a sharp sell-off in October, the data centre operator enters November trading at a substantial discount to its previous highs.
And while the company is facing some genuine challenges, I believe its long-term growth story remains attractive.
In fact, I think there are five good reasons to consider buying NEXTDC shares this month.
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The recent NEXTDC share sell-off could be an opportunity
My first reason is the significant decline in NEXTDC's share price.
The company's recent problems at its M3 Melbourne data centre have understandably unsettled investors.
Last month, the company announced to the ASX that delays to electricity network upgrades mean contracted capacity cannot be delivered as originally planned. This forced NEXTDC to reduce its FY27 earnings guidance.
However, I believe the market may be placing too much emphasis on these near-term challenges.
While the delays are significant and could have further financial consequences, I don't think they have fundamentally changed the company's longer-term growth opportunity.
For patient investors, the sell-off could provide an attractive entry point.
An enormous contracted order book
Another reason I'm optimistic is the scale of NEXTDC's existing customer commitments.
At the end of FY26, the company advised that it had approximately 740MW of contracted utilisation, including a forward order book of 565MW. This is based on an estimate of $1.42 million per MW, which is in line with what it recorded in the last financial year.
That's a substantial amount of capacity that customers have already committed to using.
As NEXTDC builds and delivers this capacity, it should begin generating additional revenue and earnings.
In fact, based on NextDC's FY26 results, I estimate that its 740MW of contracted capacity could generate approximately $1.05 billion in annual EBITDA once fully operational and billing.
Of course, the M3 situation demonstrates that delivering contracted capacity isn't always straightforward.
Nevertheless, I think the size of the order book provides considerable confidence in the underlying demand for NEXTDC's services.
Demand should keep growing
I also believe NEXTDC is operating in an industry with an excellent long-term outlook.
The rapid development of artificial intelligence (AI), growing use of cloud computing, and increasing digitalisation of businesses are creating enormous demand for data centre infrastructure.
And I expect these trends to continue for many years.
Australia's position as a major developed economy with growing digital infrastructure requirements should also support investment in local data centres.
For NEXTDC, this creates opportunities to expand existing facilities, develop new locations, and attract additional customers.
Its financial position
My fourth reason is NEXTDC's financial flexibility.
Following concerns about its funding position, last week the company confirmed to the ASX that it had approximately $8.7 billion in available liquidity at the end of September.
It also confirmed that it remained compliant with its financial covenants.
I think this provides some reassurance that NEXTDC has access to substantial funding as it works through the current delays and continues developing its facilities.
The company still faces significant capital expenditure requirements, but I believe its funding position gives it room to pursue its growth plans.
A valuable infrastructure business
Finally, I like what NEXTDC has spent years building.
The company has established a network of data centres in strategic locations, developed relationships with major technology customers, and invested heavily in connectivity and supporting infrastructure.
Replicating this network would require substantial capital, suitable locations, access to electricity, and considerable time.
I believe these advantages could become increasingly valuable as demand for data centre capacity grows.
And as more of its facilities become operational and generate revenue, NEXTDC has an opportunity to benefit from the investments it has already made.
Foolish takeaway
I believe NEXTDC shares are worth buying in November for investors with a long-term outlook.
The M3 delays could continue weighing on sentiment, and there may be more volatility before confidence returns.
However, I think the company's existing customer commitments and substantial growth opportunities make it worth backing.
