NEXTDC today announced that it has experienced significant interest in its new Sydney S2 facility that is currently under development and, the Company has already received orders for more than 5MW of capacity. Revenue recognition for these commitments will commence in 1HFY19 and ramp up to full billing over the following 30 months. These initial orders are for terms of five years from their commencement date with options to further extend their terms.
S2 will comprise ~8,700m2 of technical space and a total IT capacity of 30MW at full fit-out. Consistent with the Company’s Brisbane B2 and Melbourne M2 facilities, S2 is expected to achieve Uptime Institute (UTI) Tier IV design and construct certification, is planned for UTI GOLD operational sustainability and will target a level of energy efficiency that has never been achieved in Australia before. Seamless cross-connection between S1 and S2 will be available from day one through NEXTDC Data Centre Interconnect, as will AXON Ethernet cloud on ramp for Amazon Web Services, Microsoft ExpressRoute, Google Cloud Platform, IBM Cloud, Oracle Fast Connect, and other cloud on-ramps.
Development and construction of S2 is currently underway and the site is expected to open in 1HFY19 with an initial capacity of 6MW. Based on receipt of these orders as well as the strength of its sales pipeline, the Company expects to accelerate the development of an additional 4MW of capacity into FY19, which would take the total built capacity at S2 to approximately 10MW.
Commenting on the Company’s sales performance, Craig Scroggie, NEXTDC’s CEO said “We continue to experience strong demand for NEXTDC’s premium data centre services across the national footprint. Notwithstanding the orders already received for S2, we remain in advanced negotiations in relation to further large customer opportunities that have the potential to result in a significant increase in the Company’s contracted utilisation base”.