NextDC (ASX: NXT) is seeking to raise $120 million to help fund two data centres: B2 in Brisbane and M2 in Melbourne.
The company entered a trading halt ahead of the capital raising announcement.
An unsecured notes offer from the data centre provided that closed on 20 November raised $100 million towards B2.
According to an ASX statement, NextDC continues to experience strong demand for its data centre services.
“The company’s existing facilities in Brisbane (B1) and Melbourne (M1) are now rapidly reaching capacity constraints. B1 contract utilisation reached 90 per cent at 31 October 2015 and M1 contract utilisation reached 77 per cent at 31 October,” read the statement.
The B2 data centre is expected to have an initial capacity of 1 megawatt with a target of 6MW.
M2 is expected to have an initial capacity of 2MW with a target of 25MW. The company plans to invest between $175 million and $200 million over the next 12 to 18 months in the two new data centres.
The company is currently undertaking due diligence on a number of new sites for each of the new facilities and expects to commission both data centres in the second half of financial year 2017.
NextDC said its performance for the first four months of financial year 2016 has “been in line with expectations.”
“The company is pleased to confirm that it remains on track to achieve its FY16 revenue guidance of $85 million to $90 million and EBITDA guidance of $25 million to $28 million.”