GoodmanGroup News & Analysis

NextDC Shares Jump 50.84% After Goodman and Digital Realty Buy Stakes

NextDC shares rose 50.84% on Thursday following purchases of stakes by Goodman Group and U.S.-listed Digital Realty. Both companies acquired up to 9.9% stakes in NextDC by conducting an aftermarket bookbuild targeting shares at A$9.50 each. NextDC's board described the stake purchases as "opportunistic," coinciding with a recent disclosure of a power supply delay at its M3 Melbourne data center and a revision of its fiscal 2027 guidance. Neither Goodman nor Digital Realty currently intends to make a takeover bid but reserved the right to do so. This rally occurred despite declines in U.S. data center stocks like CoreWeave and Iren, which fell approximately 9% and 11.2%, respectively. The acquisitions matter because they represent strategic moves by significant data center operators, signaling confidence in NextDC despite its operational challenges. This could influence investor interest and valuation in the Australian data center sector amid evolving AI infrastructure development conditions. Ordinary investors should note the share purchase price of A$9.50 and the potential for future takeover activity as key factors affecting their holdings in NextDC (NXT).