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· Posted on
April 15, 2024

NextDC plugs $1.3 billion into its data centres as the AI rush keeps on giving

NextDC is preparing to spend more than $1 billion on new centres as demand for more data centres skyrockets amid the AI boom.

What's the key learning?

  • Similar to Nvidia, the chipmaker, the picks and shovels are the big winners in the AI rush.
  • NextDC is not the only local data centre operator enjoying a jump in demand for cloud computing.
  • Just four years ago, another Aussie company, AirTrunk, was just worth $3 billion but now has risen to a valuation of more than $15 billion.

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👉 Background: NextDC is a data centre operator with 13 data centres. It's currently developing another nine centres, including in Malaysia and New Zealand.

👉 What happened: Over the last year, shares in NextDC have risen by over 51%, and now the company is preparing to spend more than $1 billion on new centres as demand for more data centres skyrockets amid the AI boom.

👉 What else: Generative AI needs huge amounts of electricity and specialised data centres in order to function, and as generative AI expands, so does the need for data centres.

What's the key learning?

💡Be the pick and shovel in the gold rush.

💡NextDC, by supporting the growing AI industry with data centres, is one of the big winners in the AI rush. And it's not the only one - AirTrunk has jumped in valuation from $3 billion to $15 billion in just 4 years.

💡But as demand for AI increases, so do the energy needs of data centres, which has a massive impact on the environment. One of the biggest hurdles for data centres will be sourcing green energy to meet net zero emissions goals.

‍

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