Aussie data center firm NextDC is raising AU$1.1 billion (US$796m) in convertible notes to fund its digital infrastructure build-out.. It is the third time in little over four months that the ASX-listed firm has sought fresh capital.. Convertible notes allow companies to borrow money at a lower interest rate, with the lender accepting that some of the debt can be converted to equity at a later date, when the company’s share price has gone up..
The notes are a way to raise money without immediately issuing new shares and diluting the value of existing holdings. They have become a popular debt instrument among data center firms that need access to large amounts of capital to fund construction projects. The companies are banking on their stock prices rising as more data centers come online and demand for AI services continues to grow..
In this case, the notes will mature on 17 September 2031. The lenders will be able to buy shares at a price of AU$16.69 ($11.97), a 32.5 percent premium on the $AU12.60 ($9.04) reference price set by NextDC.. Craig Scroggie, CEO of NextDC, said: “The transaction provides NextDC with efficient, committed, funding for our development pipeline, and diversifies NextDC’s sources of funding with a new, deep, global investor base, whilst preserving our senior debt capacity and balance sheet flexibility.”.
NextDC has 20 data centers in operation or development across Australia. It also has sites in planning or under evaluation in Japan, Thailand, Malaysia, and Singapore. Customers include OpenAI, which is set to take space at its upcoming S7 data center in Sydney..
In July it raised AU$500 million (US$347 million) in senior debt facilities, building on AU$1.8 billion (US$1.25bn) of commitments announced in May.. More in Australasia. 16 Mar 2026.
17 Apr 2026. 02 Jul 2026. More in Investment / M&A / Financing.
24 Mar 2026. 28 May 2026
