NextDC shares soar nearly 51% after Goodman, Digital Realty stake purchases
The move comes two weeks after NextDC disclosed a power supply delay at its M3 Melbourne data center and revised fiscal 2027 guidance.
Quick Look
- Shares of Australian data center operator NextDC surged more than 42% Thursday after Goodman Group and U.S.-listed Digital Realty moved to acquire stakes of up to 9.9% each via an aftermarket bookbuild at A$9.50 per share.
- NextDC's board called the move opportunistic, coming two weeks after the company disclosed a power supply delay at its M3 Melbourne data center and revised fiscal 2027 guidance.
- Goodman and Digital Realty said they have no current intention of making a takeover bid but reserved the right to do so.
AI-generated summary
Why It Matters
NextDC disclosed a power supply delay at its M3 Melbourne data center two weeks prior and revised its fiscal 2027 guidance. Goodman Group and Digital Realty conducted an aftermarket bookbuild Wednesday seeking shares at A$9.50 apiece.
Shares of Australian data center operator NextDC surged more than 42% Thursday after Goodman Group and U.S.-listed data center operator Digital Realty moved to acquire stakes of up to 9.9% in the company.
In a regulatory filing on the same day, NextDC said the two companies conducted an aftermarket bookbuild Wednesday, seeking shares at A$9.50 apiece.
NextDC's board called the move "opportunistic," noting that it came two weeks after the company disclosed a power supply delay at its M3 Melbourne data center and revised its fiscal 2027 guidance.
The company said it was not aware of the outcome of the share purchase. Goodman and Digital Realty told investors they had no current intention of making a takeover bid, but reserved the right to do so.
NextDC's rally came against a backdrop of weakness in U.S. data center stocks overnight. Shares of CoreWeave fell about 9%, while Iren dropped roughly 11.2% on Wednesday.
The sell-off followed sweeping Democratic victories in the U.S. midterm elections, which raised expectations of tighter scrutiny and potential restrictions on data center development that could slow the AI infrastructure buildout.
What to Watch
AI outlook — possibilities, not facts
Goodman Group or Digital Realty may make a takeover bid for NextDC
Possible · Within months
Open Questions
- What was the outcome of Goodman Group and Digital Realty's share purchase?
- Will Goodman Group or Digital Realty make a takeover bid for NextDC?
- How will the power supply delay at M3 Melbourne affect NextDC's operations?
- What specific restrictions on data center development might result from the U.S. midterm elections?
