NextDC shares surge 43% after Goodman, Digital Realty stake purchases
Australian data center operator says move is opportunistic amid U.S. data center stock weakness
Quick Look
NextDC shares surged more than 42% after Goodman Group and U.S.-listed Digital Realty moved to acquire stakes of up to 9.9% in the Australian data center operator at A$9.50 per share, calling the move opportunistic.
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 on 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 weeks
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?
