Australian NEXTDC set to raise A$1.1 billion via convertible notes
NEXTDC, one of Australia's data center operators, is set to raise A$1.1 billion (US$795.63 million) by selling convertible notes.
This is its third fundraising in just over four months, with the proceeds to be used for the ongoing expansion of the local data center pipeline, the cost of the capped call transactions, transaction costs, and the remainder for general corporate use.
The notes mature in 2031, with a chance for investors to cash out early in 2029.
NEXTDC expects 70% capital spending rise
The money will go toward building more local data centers and covering some transaction costs, with capital spending expected to jump as much as 70% in fiscal 2027 from fiscal 2026 spending.
Even though Australian data center developers are facing challenges like tight power and water supplies, NEXTDC's shares actually went up 2.2% after the news, showing investors are still excited about Australia's AI future.