Goodman Group and Digital Realty Launch Up to A$4.997 Billion Share Bid for NextDC

Goodman Group and Digital Realty have teamed up to launch a share bid for Australian data center operator NextDC valued at up to A$4.997 billion, according to a term sheet seen by Reuters, in a move that underscores the intensifying global race to control critical digital infrastructure.

The joint approach brings together two major players in the data center and industrial property space. Goodman Group, an Australian-listed global industrial property and logistics specialist with a growing digital infrastructure portfolio, is partnering with U.S.-based Digital Realty, one of the world's largest data center owners and operators, to pursue NextDC. The bid targets the Australian-listed data center developer and operator, which has been expanding its footprint across Asia-Pacific markets.

The transaction, if completed, would rank among the largest data center sector deals in the Asia-Pacific region and reflects the soaring valuation of digital infrastructure assets as hyperscale cloud providers and artificial intelligence workloads drive demand for computing capacity. NextDC has positioned itself as a key player in Australia's data center market, with facilities in major metropolitan centers and a development pipeline aimed at serving enterprise and hyperscale customers.

The term sheet outlines a share-based bid worth up to A$4.997 billion, though further details on the structure, pricing per share and conditions were not immediately disclosed. The approach remains subject to due diligence and regulatory approvals, and there is no certainty that a binding agreement will be reached.

The bid signals continued consolidation interest in the data center sector, where institutional investors and specialist operators are competing to acquire assets tied to long-term digital growth trends. For Digital Realty, a successful deal would deepen its presence in the Asia-Pacific region, while Goodman Group would expand its digital infrastructure ambitions beyond its traditional industrial property base. The outcome of the bid will be closely watched by investors across the infrastructure and technology sectors.