The Nextdc Ltd (ASX: NXT) share price is up 4% after the data centre business announced further customer contract wins.
It describes itself as Asia’s most innovative data centre-as-a-service provider. The company says it’s building the infrastructure platform for the digital economy.
Contracted utilisation update
The company announced even more customer contract wins.
It was pleased to reveal that its pro forma contracted utilisation as at 30 June 2026 increased by 73MW (11%) to 740MW since the last update on 20 April 2026.
This is a very impressive update considering the April 2026 announcement said the contracted utilisation had increased by 60% (250MW) since 31 December 2025. It’s reporting strong growth on growth.
Back to today’s announcement – it said that as a result of these customer contract wins, Nextdc’s pro-forma (underlying) forward order book had increased to 565MW.
The forward order book represents the difference between the pro-forma contracted utilisation (740MW) and billing utilisation (175MW) at 30 June 2026.
The pro forma forward order book is expected to progressively convert to billings, revenue and EBITDA (EBITDA explained) over the period between FY26 to FY30.
Nextdc said that FY26 net revenue, underlying EBITDA and capital expenditure guidance remains unchanged.
Outlook for the Nextdc share price
The company continues to grow at a very impressive rate. To grow by more than 10% in just a couple of months
It’s clearly tapping into the enormous demand for data centres from the big US tech and AI businesses and it’s driving the company’s revenue and EBITDA higher.
Will the market want to see the company achieve a net profit sooner rather than later? Probably, but perhaps not for a while yet. There is also growing scrutiny on data centres globally based on their energy usage, water usage, land usage and noise pollution, so this could hamper Nextdc’s growth in the future.
Despite having much more demand, the Nextdc share price is now 25% lower than where it was in mid-June 2024. It could be undervalued, but it’s hard to say what a good value is.
How long will the actual economic life of these assets be? Will new technology make them less valuable quickly? Are the assumptions reasonable?
For me, there’s a lot of uncertainty surrounding the appeal of the valuation, so there are other ASX growth shares I’d buy first.
