The Nextdc Ltd (ASX: NXT) share price is up 7% after announcing further contract utilisation of its data centres.
Nextdc builds and operates data centres, which are needed for AI to operate. Data centres are the infrastructure platform for the digital economy, delivering the critical power, security and connectivity for global cloud computing providers, enterprise and government. Nextdc claims to have a strong focus on sustainability and operational excellence through renewable energy and high-efficiency operations.
Contracted utilisation
Nextdc revealed that following further customer contract wins, the company’s pro forma contracted utilisation has increased by a further 96MW (or 30%) to 412MW since the last update on 1 December 2025.
As a result of these customer contract wins, Nextdc’s pro-forma forward order book has increased to 301MW.
The pro forma forward order book is expected to progressively convert to billings, revenue and EBITDA (EBITDA explained) over the period between FY26 to FY29.
Nextdc said its FY26 net revenue, underlying EBITDA and capital expenditure guidance remains unchanged.
The guidance is now that capital expenditure for FY26 is between $2.2 billion and $2.4 billion.
With the FY25 result, Nextdc outlined its FY26 net revenue guidance is expected to be between $390 million to $400 million (compared to $350.2 million in FY25’s result). The underlying EBITDA for FY26 is expected to be in the range of $230 million to $240 million (up from $216.7 million in FY25).
Is the Nextdc share price a buy?
Investors clearly think so today, with the data centre operator higher by around 7%. Despite that, it’s still down by around 30% from its peak in September.
This could be an opportunistic time to consider the business considering it’s down so much yet it continues to announce impressively strong demand for its data centres.
Will data centre businesses be as profitable as the market is expecting in the years ahead? I’m not sure it’s the best buy on the market today, there are other ASX growth shares I’d rather buy.
