NextDC reveals Sydney data centre plans

S2 site in North Sydney selected, another data centre proposed

Melbourne-based data centre operator, NextDC (ASX:NXT), has continued its expansion plans with a non-binding agreement to acquire a new data centre site called S1 in North Sydney.

S1 will provide colocation services to customers and will be between 3000 and 5000 square metres including office and plant space.

The contract with the other party, which was not named, was to be signed on 21 March. Completion of the acquisition was expected by April 2011.

An investors presentation released to the ASX this morning revealed that the data centre was slated to go live in quarter three of 2012 and will be adjacent to a business park in North Sydney.

According to the presentation, the site was a strategic acquisition for the company and would address medium to long-term needs of customers.

“However, NextDC continues to explore an additional Sydney site in a strategic location addressing immediate customer demand,” read the investor documents.

Chief executive officer, Bevan Slattery, said in a statement that the exact location of the site was confidential.

“We can confirm the site is ideally situated adjacent to major infrastructure in a precinct which is recognised as one of Australia's major technology hubs,” he said.

Slattery also said it was working closely with the vendors, expert consultants and urban utilities to complete due diligence requirements as quickly as possible.

NextDC’s data centre M1 in Melbourne was expected to go live on 31 May 2011 while Brisbane’s B1 will go live in November 2011.

Perth, Canberra and Auckland, New Zealand, were cited as growth opportunities in the investor report.

The announcement follows the appointment last week of current RP Data (ASX:RPX) non executive director, Ted Pretty, as a executive chairman on the Next DC board.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow Computerworld Australia on Twitter: @ComputerworldAU

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Tags virtualizationNorth Sydneyexpansiondata centresData CenterNextDCData CentreS2virtualisation

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