- A U.S. data center REIT is moving in Australia. Digital Realty and Goodman Group jointly acquired a 9.9% stake in NEXTDC in an after-market share purchase, paying an average A$9.22 a share, Bloomberg reported.
- No bid, for now. The pair said neither has a current plan to launch a takeover of NEXTDC, but both reserved the right to make a bid in the future.
- They want a seat at the table. Digital Realty and Goodman said they look forward to potential collaboration with NEXTDC’s board and management and will discuss ways to help address challenges the company faces.
- NEXTDC has been volatile. Its shares fell 2.7% in early Sydney trading Monday after a 77% surge last week, following an October guidance cut tied to a power delay at a Melbourne data center.
What Happened?
Goodman Group and Digital Realty Trust jointly acquired a 9.9% stake in Australian data center operator NEXTDC through an after-market share purchase, Bloomberg reported. In a statement Monday, the companies said they paid an average A$9.22 per share. Texas-based Digital Realty and Sydney-based Goodman said they have no current plan to bid for NEXTDC but reserved the right to do so, and that they would discuss ways they might help address NEXTDC’s challenges. NEXTDC shares fell 2.7% in early Sydney trading after surging 77% last week.
Why It Matters?
The stake gives Digital Realty, one of the largest U.S. data center REITs, a strategic foothold in Australia’s AI-driven data center market at a time when NEXTDC is under pressure after cutting earnings guidance in October because of a power delay at a Melbourne facility. Buying just under 10% and explicitly keeping a bid option open puts Digital Realty and Goodman in a strong position to influence NEXTDC’s strategy or move toward control later. It also shows that large operators still see value in data center platforms despite last week’s AI-related selloff.
What’s Next?
Watch NEXTDC’s board response and whether talks lead to a formal partnership, capital injection or eventual bid. For DLR shareholders, the key questions are how much capital the partnership would require and how it fits with Digital Realty’s broader development pipeline.
Affected Tickers and Coins: DLR, SRVR
Source: Bloomberg
