Consumer Demand to Drive NEXTDC’s Future Capital Raises

Jul 4, 2024


In a recent interview with Listed@ASX, published on the ASX website on Thursday, July 4, Craig Scroggie, CEO of NEXTDC, shared valuable insights on capital raising, investor engagement, and the company’s strategic plans for the future. The interview was conducted by Alexandra Cain, a freelance finance journalist.

Advice on Raising Capital in the Current Market

Craig Scroggie emphasized the importance of maintaining clear communication with investors. "Transparent and effective communication ensures investors are well-informed about risks and potential rewards, fostering trust and facilitating stronger business relationships," said Craig. He highlighted the need to clearly explain the growth strategy and use of funds, assuring investors that their support will lead to enhanced value creation. NEXTDC, operating within a thriving industry with strong customer demand, has strategically deployed capital to scale operations domestically and internationally across Asia.

Engaging with Domestic and Offshore Investors

Craig discussed NEXTDC’s approach to engaging with investors both domestically and offshore. The company maintains regular communication through investor conferences, facility tours, and active engagement with equity analysts. This comprehensive approach ensures that all investors are well-informed and engaged, which has been instrumental in maintaining their support during equity-raising events.

Future Capital Raising Plans

Addressing future capital raising plans, Craig explained that NEXTDC operates within a capital-intensive industry, raising capital strategically in alignment with customer demand. "NEXTDC is in a robust financial position, which positions us strongly to continue pursuing our strategic growth initiatives in Australia and abroad," he noted. He mentioned the potential need for additional capital in response to anticipated growth driven by cloud computing and AI.

Building Investor Confidence

Craig highlighted the importance of consistency in reporting operational and financial metrics to build investor confidence. This transparency aids in informed investment decisions and underscores NEXTDC’s commitment to accountability and transparency.

Impact of the AI Revolution on NEXTDC

Discussing the impact of the AI revolution, Craig remarked, "The AI revolution is significantly shaping the data centre industry, particularly in environments where AI workloads are managed." He explained that NEXTDC is uniquely positioned to accommodate substantial AI workloads and is introducing new liquid cooling technologies to support these demands.

Staying Ahead of Market Developments

Craig noted the surge in demand characterised by larger hyperscale orders and a more diverse client base. He emphasized NEXTDC’s focus on sustainability, operating energy-efficient, NABERS-certified data centres. He also mentioned the concept of AI factories, tailored specifically for large-scale AI operations, as a significant aspect of NEXTDC’s strategic planning.

Benefits of Being an ASX Listed Company

Craig concluded by discussing the benefits of being publicly listed on ASX, which provides NEXTDC with access to growth capital, transparency, and enhanced investor engagement. "This level of openness ensures that the state of our business is always clear to customers, investors, and other stakeholders, leaving no room for ambiguity," he said.

For more details, you can read the full interview on the ASX website.


About Alexandra Cain

Alexandra Cain is a freelance finance journalist who writes for The Australian Financial Review, the Sydney Morning Herald, In the Black, and Forge magazine. Some of her corporate clients include BT, the Commonwealth Bank, Deloitte, and Macquarie Bank. She lives, works, and surfs in sunny Dee Why.

About Listed@ASX

Listed@ASX covers listed company best practices and issues of interest. With professional journalism and a subscription list covering directors, CEOs, senior executives, company secretaries, and advisers of listed companies, it is a must-read for members of the ASX-listed community.

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