Company set to break ground on first Japanese project in December
Australian data center firm NextDC is seeking a partner for a multi-billion-dollar joint venture in New South Wales.
During the company’s earnings results last week, NextDC said it was seeking to establish a joint venture platform to own, develop, and operate its proposed S4 and S7 data centers in Western Sydney, in partnership with third-party private capital.
The company said it is targeting AU$15 billion (US$9.8bn) over ten years or more to fund 850MW of new data center capacity in Sydney.
NextDC said the deal will enable the company to access “deep pools of private equity capital.”
The firm aims to hold a minority stake while continuing to manage and operate the JV. It is targeting financial close for the planned JV in the next 12-18 months.
“Once established, the joint venture can serve as a scalable model for future joint ventures, enabling expansion into development opportunities beyond Western Sydney,” NextDC said in its earnings presentation.
The Australian Financial Review reports the data center firm has tapped Morgan Stanley and Cadence Advisory to secure long-term partners as part of “Project Berlin.”
NextDC has six data centers in Sydney in operation or development, totaling just under 500MW and 178,500 sqm (1.9 million sq ft). As well as S3 and S6 in Artarmon, NextDC operates three data centers (S1, S2, and S5) in Macquarie Park and one (S4) in Horsley Park.
Plans for S7 were revealed last year. The site in Eastern Creek covers approximately 258,000 sqm (2.78 million sq ft) of developable land area; the company said it could offer up to 550MW at full build-out.
NextDC posts results, plans groundbreak in Tokyo
NextDC operates or is developing 20 data centers across Australia, including in Sydney, Melbourne, Brisbane, Perth, Port Hedland, Canberra, Adelaide, the Sunshine Coast, and Darwin.
Beyond Australia, NextDC currently has sites in planning or under evaluation in Tokyo, Japan; Bangkok, Thailand; Johor and Kuala Lumpur, Malaysia; and Singapore.
For the financial year 2025, NextDC’s total revenue increased AU$22.9m (six percent) to AU$427.2m. EBITDA for the year was AU$200m. Loss before tax was AU$60 million.
Commenting on the results, NextDC CEO Craig Scroggie said: “FY25 exceeded net revenue guidance and set new contracting records. FY26 will be a landmark year for NextDC as we make strategic investments to expand our platform, positioning us at the forefront of the digital infrastructure boom driven by the fourth industrial revolution.”
In the results, the company said it currently has more than 120MW of capacity under development and another 100MW in planning. Some 43MW was delivered in 2025, taking its total operational capacity to around 208MW. NextDC claims a development pipeline totaling more than 3GW.
Capital expenditure for the 2025 financial year was AU$1.699 billion (US$1.11bn), expected to reach AU$1.8-2 billion (US$1.18-1.31bn) in 2026.
The company has also entered into a partnership with CBRE I.M. to develop a data center site in Tokyo, Japan. The site has been secured, and groundbreaking is due to start in December 2025 for a 2030 completion date. The 30MW site will be liquid-cooled and target Tier IV-quality.
NextDC first announced plans to expand internationally back in 2023. According to the company’s website, NextDC is planning two facilities (TK1 and TK2) in Tokyo. TK1 is listed as in development and TK2 as under evaluation, according to the earnings presentation.
Sites in Bangkok, Johor, and Singapore are also listed as under evaluation.
Source: DCD
