Business · Datacenter Dynamics
Digital Realty and Goodman Group line up AU$715m bid for stake in Australia's NextDC
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Goodman Group and Digital Realty have offered AU$715 million (US$499.7m) for a 9.9 percent stake in beleaguered Australian data center operator NextDC.
Key facts
- Goodman Group and Digital Realty have offered AU$715 million (US$499.7m) for a 9.9 percent stake in beleaguered Australian data center operator NextDC
- Australia-based Goodman Group, which develops data centers and commercial property, and US data center firm Digital Realty have offered AU$9.50 (US$6.65) per share for a piece of NextDC, a 45.5
- It raised AU$500 million (US$347m) in debt financing in July
- Local councilors have yet to give the go-ahead for the upgrade, which would see the size of the power poles in the area double from 11 to 22 meters (72 feet)
Summary
The two companies have joined forces to make the offer, which was revealed via a term sheet submitted to the Australian Stock Exchange after trading finished on Wednesday, as reported by Reuters and others. ASX-listed NextDC’s share price has fallen sharply by as much as 45 percent in recent weeks. The M3 facility in West Footscray had been due to be expanded, but the installation of high electricity poles, which would have enabled more power to flow to the facility, has been delayed until the 2027/28 financial year after community protests. NextDC opened M3 in 2022, and the expansion would see capacity at the site grow from 60MW to 225MW.