NextDC heads west

Announces plans to open Perth-based data centre next year

ASX-listed data centre provider, NextDC (ASX:NXT), has announced plans to expand into Western Australia on the back of an over-subscribed share purchase plan this month.

In-depth: Data centre migration guide.

The company said in an ASX statement that it expected to purchase land 11 kilometres north of the Perth CBD by July this year for construction of a purpose-built facility to come online by the middle of next year.

The facility would be the fourth such acquisition in the company’s growing arsenal, complementing a completeted centre in Brisbane, a facility under construction in Melbourne and plans to build in Macquarie Park, Sydney.

A second Sydney site is also under exploration to meet short-term customer demands.

The Perth site under consideration is in a strategic location, according to the company’s chief executive, Bevan Slattery, and would provide 3000 square metres of additional capacity beyond the 15,000 square metres of facility space already planned in the other three capital cities.

“This expansion is driven by anticipated customer demand for a carrier and systems integrator neutral data centre in Western Australia. Customers want flexibility and NEXTDC is going to offer that nationally," Slattery said in a statement.

Vocus has also signalled moves to Perth, acquiring Perth iX for $7 million last month.

The announcement for expansion to the western state, days after closing acquisition of land in Sydney, comes after NextDC announced it had overshot its funding target of $5 million for a share purchase plan launched last month. Under the initial plan share traders were offered up to $15,000 each worth of stock in the company in order to raise the required funding.

The Perth land is expected to be purchase with the additional funding raised beyond the initial $5 million.

According to NextDC, the success of the share offer in additional to institutional and conditional placements amounting to $33.8 million earlier last month helped to provide more than $100 million in equity, with the company owning $75 million cash at bank. It is unclear whether this funding is to be used for additional expansions.

The first NextDC services are expected to go live next month in Brisbane. It has already secured Harbor MSP as anchor tenant for Melbourne.

Follow Computerworld Australia on Twitter: @ComputerworldAU

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Tags data centresvirtualisationData CentervirtualizationexpansionNextDC

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