Goodman, Digital Realty Bid for NextDC Stake

The consortium offered AU$715 million for 9.9 percent of the Australian data centre operator after its shares fell sharply.

Updated on Nov. 4, 2026 in Data Centers

Photograph of a low modern data centre building with long grey metal cladding, ventilation louvres and cooling units on a concrete pad under an open sky. — Goodman Group and Digital Realty offered AU$715 million for a 9.9 percent stake in NextDC after the Australian data centre operator's shares fell as much as 45 percent. AI Illustration. Upload story photo >

Goodman Group and Digital Realty offered AU$715 million for a 9.9 percent stake in NextDC, revealed in a term sheet lodged with the Australian Securities Exchange after trading closed on Wednesday. The offer comes as NextDC's share price has fallen by as much as 45 percent in recent weeks.

Why it matters

NextDC has faced delays at its M3 Melbourne expansion and deferred AU$140 million in customer revenue, placing pressure on its growth plans. The proposed investment signals continued confidence from major investors in Australia's data centre sector.

The AU$9.50 offer price represents a 45.5 percent premium to NextDC's prior valuation, while the M3 Melbourne site would expand capacity from 60MW to 225MW. The term sheet does not specify whether the companies will later seek a controlling stake in the operator.

The players

NextDC

An Australian data centre operator with facilities in Australia and sites under evaluation in Japan, Thailand, Malaysia and Singapore.

Goodman Group

A large Australian industrial property group that is partnering with Digital Realty on the offer for a NextDC stake.

Digital Realty

A major US data centre real estate investment trust that is joining Goodman Group in the bid for NextDC.

JP Morgan

The global investment bank leading the offer for the NextDC stake.

The details

The offer was lodged after trading finished on Wednesday and is led by JP Morgan. NextDC has paused new development projects and land acquisitions across its portfolio while the M3 installation of higher electricity poles in West Footscray awaits approval following community protests.

October 2026: NextDC deferred AU$140 million in customer revenue due to delays to electricity network upgrade work at a Melbourne data centre.
4 November 2026: The term sheet was submitted to the Australian Securities Exchange after trading finished.
2027/28 financial year: Installation of the high electricity poles at the M3 facility is now expected.

Market Landscape

The offer shows global data centre investors looking to take positions in Australia's sector even as NextDC's share price has fallen. The bid follows NextDC's July raise of AU$500 million in debt financing as it pushes to expand its Australian capacity.

Delays to the M3 expansion may affect the capacity of data centres serving Australian businesses and online services. Customers should watch for how NextDC's deferred revenue and paused projects affect service availability.

The takeaway

The offer shows that major investors still see value in Australian data centres despite recent setbacks. Its outcome will indicate how far capital is willing to back the sector's expansion.