Digital Realty and Goodman buy 9.9% of NextDC for A$693 million after its 42% crash
The A$693 million stake, crossed through JPMorgan between November 3 and 6, landed two weeks after a suspended power line stripped A$3 billion from the Australian operator. For Digital Realty, whose September quarter alone carried US$1.4 billion of construction spend, it is a cheap option on capacity that cannot yet be switched on.
Vincent Jiangthree-minute read
A raid that never asked the board
Goodman Group, the Australian industrial property giant, and Digital Realty+1.54% — Digital Realty, up 1.54 percent today, the New York-listed data-center owner, have taken 9.9% of NextDC+0.29% — NextDC, up 0.29 percent today, the Australian data-center operator, and the target says nobody formally told its board 123. Their vehicle, Ackland Investments No.1, owned in equal shares, bought 75,215,528 shares between November 3 and 6 in a JPMorgan-run crossing at an average A$9.22: about A$693 million, or US$476 million 123.
NextDC says it has received no takeover proposal and no formal communication of any kind, and has hired Barrenjoey and UBS as joint lead advisers, Cadence Advisory as independent adviser and Mallesons as legal counsel 1. Its board called the raid opportunistic; the buyers told the exchange they have no intention of making an offer, while reserving the right 238.
One suspended wire, A$3 billion gone
The trigger sat outside NextDC's fence. Jemena, the electricity network business, suspended the pole-line works feeding its M3 Melbourne site in September, citing safety concerns and community opposition, and does not expect to restart before February 2027 45. On October 21 NextDC closed down 41.7%, A$3 billion of value gone in its worst session since its 2010 listing, at a near nine-year low of A$5.35 24.
Fiscal 2027 revenue guidance fell to A$475–500 million from A$615–640 million, A$140 million of contracted M3 revenue was deferred, and uncontracted projects and land purchases were shelved 45. The next increase in grid supply to M3 is now a 2028 event 4.
NextDC closed back above the raid's average cost within three sessions
The crash price is gone: NextDC sits above what Goodman and Digital Realty paid
Data
| NextDC share price | |
|---|---|
| 21 Oct close | A$5.35 |
| 4 Nov close | A$6.53 |
| 5 Nov close | A$9.85 |
| 9 Nov close | A$10.4 |
Cheaper to buy than to build
The raid crossed at A$9.50 after the close on November 4, a 45% premium to the A$6.53 close, and the stock has since finished above the buyers' cost: A$9.85 on November 5, A$10.40 by November 9 361. The crash price is gone.
What remains is a stake parked under the 10% foreign-investment notification line and the 20% takeover threshold, with Macquarie's Andrew Gilles calling a formal bid the likely next step, subject to the competition regulator and the Foreign Investment Review Board 3. Yarra Capital's Dion Hershan had the crashed price sitting 30–40% below the replacement cost of the built assets 3.
A small check beside a US$1.4 billion build bill
Greg Goodman says he has the money to build data centers; pulling his A$1.2 billion Lane Cove West project on September 28 after residents objected shows the money is not the constraint 3. For Digital Realty the check is small, about US$238 million for its half against US$1.38 billion of September-quarter construction spend, in a month that also opened a R$20 million cooling lab in Brazil 297. The next readings: NextDC's November 20 shareholder meeting, where its spending review lands, and Jemena's February restart date 297.
Digital Realty's construction spending nearly doubled in the quarter it crossed NextDC shares
Data
| Capital expenditure | |
|---|---|
| Q4 '24 | $0.22B |
| Q1 '25 | $0.73B |
| Q2 '25 | $0.77B |
| Q3 '25 | $0.69B |
| Q4 '25 | $0.54B |
| Q1 '26 | $0.86B |
| Q2 '26 | $0.92B |
| Q3 '26 | $1.38B |
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