Join our daily newsletter At The Bell to receive exclusive market insights
- NEXTDC achieves record-breaking sales in FY23
- CEO highlights the company’s commitment to sustainability, safety, and innovation
- The digital acceleration and the evolution of cloud services are key drivers for NEXTDC’s success
- Strategic priorities for FY24 focus on leading the hybrid computing revolution and expanding into new markets
- NXT is trading at $13.17 at 10:30am AEDT
Data Centre builder and operator NEXTDC (NXT) has celebrated record FY23 sales at its 2023 AGM.
FY23 saw a 25 per cent increase in total revenue and a 15 per cent rise in underlying earnings.
NEXTDC posted A$362.4 million in revenue for FY23 and earnings (EBITDA) of $193.7 million.
NEXTDC also closed the financial year with $766 million in cash. Shares were up 0.31 per cent in the second hour of morning trade.
“Megatrend” strategy
NEXTDC aligns its services with key megatrends, particularly in artificial intelligence (AI), a major driver for data centre services worldwide.
NEXTDC anticipates the arrival of the AI infrastructure deployment wave in Australia, expecting onshore hosting growth in 2024.
The global AI market is projected to grow at an annual rate of 37 per cent between 2023 and 2030, creating significant opportunities for the company.
“Our success to date has been astounding but with AI looming as an enormous tailwind for the data centre industry, I believe we are at the beginning of the most important change since Appleās iphone,” NEXTDC CEO Craig Scroggie said.
NEXTDC also remains focused on the provision of cloud services.
“The cloud continues to evolve, driving organisational transformation. Gartner is predicting that 85% of organisations will have adopted cloud-first strategies by 2025 while they also identified that spending on cloud in Australia reached $18.7 billion in 2022,” Scroggie added.
New facilities
The company continues to scale its platform domestically with new hyperscale facilities in Sydney and Melbourne.
Expansion plans extend to the Asia/Pacific region, with developments in Kuala Lumpur and Auckland.
The company also received Frost & Sullivan’s 2023 Australian Data Centre Services Company of the Year and the Asia-Pacific Customer Value Leadership Award.
NXT was last trading at $13.17 at 10:30am AEDT.
