18 May 2016

NEXTDC secures site for second Brisbane data centre

Represents $75m-plus investment in Queensland and support for up to 300 jobs

NEXTDC Limited (ASX: NXT), Australia’s leading Data-Centre-as-a-Service provider today announced it has executed an agreement to acquire a site for the construction of B2, its second data centre in Brisbane.

With a target capacity of approximately 6MW at full fit-out, B2 will deliver much-needed colocation space and connectivity to Brisbane’s thriving business market and represents an investment of the order of AU$75 million in Queensland’s digital economy over the next 12 months.

The B2 site is located strategically on the CBD fringe in Fortitude Valley, close to a major electricity substation and significant telecommunications and public transport infrastructure, ensuring convenient access for NEXTDC customers.

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NEXTDC CEO Craig Scroggie, commented, “As we mentioned in February in conjunction with our half-year results, market support for NEXTDC has allowed us to pursue the development of additional facilities for our nationwide network of world-class data centres. Our new Fortitude Valley location is within close proximity to Brisbane’s commercial centres, and will allow us to address robust demand for a secure, powerful facility to host critical IT infrastructure and support a diverse ecosystem of carriers and cloud service providers.

“We’re excited to be giving the opportunity for Australian and locally-based companies to deliver a majority of the project, including the data centre’s pre-fabricated elements. We expect the initial construction phase will support up to 200 jobs on and off-site, with another 100 supported deeper in the supply chain during the data centre’s life-time.”

Premier Annastacia Palaszczuk said she welcomed the NEXTDC Limited investment. “The NEXTDC B2 investment complements the Government’s agenda to drive growth, jobs and the better delivery of services through innovation and next-generation IT services,” the Premier said.

NEXTDC conducted extensive due diligence on a number of potential sites for B2, which included analysis of diverse access to power, water and telecommunications infrastructure, as well as resilience to potential security and environmental risks.

NEXTDC expects practical completion of B2 towards the end of the second half of FY17, which includes development of the land, base building and associated infrastructure required to support the initial 1.5MW of IT load at launch.

As information becomes available NEXTDC will provide further updates on the acquisition of a site for M2, the company's second Melbourne facility, as well as progress on the development of B2.