NEXTDC has secured $1.1 billion through a convertible notes offering as the Australian data centre operator continues to expand its infrastructure in response to rising demand from AI and cloud customers.
The company has priced $1.1 billion of 1.75 per cent convertible notes due in 2031, which are expected to generate approximately $1.006 billion in net proceeds.
The additional funding will primarily be used to support NEXTDC’s Australian data centre development program, as the company invests in additional capacity to meet growing customer requirements.
Demand has increased as the rapid adoption of artificial intelligence drives the need for more computing power and supporting infrastructure. NEXTDC reported 740.1MW of contracted utilisation at the end of FY26, following significant growth during the year.
The capital raising comes amid a broader increase in investment in Australia’s data centre sector. Nvidia recently announced plans to work with local infrastructure providers, including NEXTDC, CDC, AirTrunk and Firmus, to support the development of up to 2GW of additional AI data centre capacity in Australia.
NEXTDC is also building its presence outside Australia. The company opened its first international data centre in Kuala Lumpur in May, with the facility forming part of a planned $1 billion investment in Malaysia.
