NextDC signs more customers for second Sydney data centre

Data centre operator to boost initial capacity of S2

Data centre operator NextDC says it will increase the initial planned capacity for its second Sydney facility, dubbed S2.

The company said today that customers had signed up for a total of 14 megawatts of capacity at the new data centre, which is currently under development and scheduled to open in 1H19.

In total, S2 contracted commitments now equal 47 per cent of the facility’s total planned capacity.

NextDC in late 2016 sought to raise $150 million to help fund the construction of S2, which will have more than twice the capacity of S1.

In April this year, the ASX-listed company set about raising $281 million to help purchase sites for S3, M3 (Melbourne) and P2 (Perth) data centres, as well as fund initial development work on P2.

NextDC said that the Tier IV certified S2 will be its first “hyperscale high-rise data centre”, with a target PUE of 1.29 (and a “seasonal best target” PUE of 1.15).

S2’s initial capacity was expected to be 6MW. At NextDC’s FY18 results, it announced an additional 8MW of capacity in response to demand. The company said today it would bring forward an additional 8MW of capacity.

NextDC said that 22MW of the 30MW total planned capacity for the data centre is currently under design and development.

“We advised the market at the time of FY18 results that the company’s sales pipeline was very strong and the timing of large sales to the hyperscale cloud market would be unpredictable given the long run nature of the sales cycle,” said NextDC CEO Craig Scroggie “We’re very pleased to have now locked in material MW contracted commitments against these expectations.”

“The demand for our data centre services continues to accelerate and exceed our expectations, particularly in the Sydney market, yet requires discipline and patience as the nexus between the hyperscale capacity planning, site development, infrastructure deployment and revenue recognition can in practice be 2-3 years for these very large hyperscale developments,” the CEO said in a statement.

“This is all part of NextDC’s  digital infrastructure business model, which continues to build long term value through contracted capacity and tangible asset backing.”

NextDC is pressing ahead with the compulsory acquisition Asia Pacific Data Centre Group, after securing 97 per cent of APDC's shares. APDC owns NextDC's M1, S1 and P1 sites.

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