---
title: "Digital Realty and Goodman buy 9.9% of NextDC for A$693 million after its 42% crash"
description: "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."
publisher: "The Inference"
section: "Deals"
published: 2026-11-12T16:55:28.654Z
modified: 2026-11-12T16:55:28.654Z
canonical: https://theinference.org/article/digital-realty-and-goodman-buy-9-9-of-nextdc-for-a-693-million-after-its-42-crash
language: en
keywords: "Data Center, Deals, Real Estate, Australia"
---

# 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.

## A raid that never asked the board

Goodman Group, the Australian industrial property giant, and [Digital Realty](https://theinference.org/markets/companies/digital-realty), the New York-listed data-center owner, have taken 9.9% of [NextDC](https://theinference.org/markets/companies/nextdc), the Australian data-center operator, and the target says nobody formally told its board [1][2][3]. 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 [1][2][3].

NextDC says it has received [no takeover proposal and no formal communication of any kind](https://www.capitalbrief.com/briefing/goodman-group-digital-realty-secure-99-stake-in-nextdc-632b5cd4-80f5-41e1-abaf-3c3fc1744e33/), 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](https://www.marketwatch.com/story/digital-realty-goodman-acquire-476m-stake-in-australia-s-nextdc-update-79db4ce6) [2][3][8].

## 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 [4][5]. On October 21 NextDC [closed down 41.7%, A$3 billion of value gone](https://www.reuters.com/world/asia-pacific/australian-ai-data-centre-operator-nextdc-shares-shed-44-revenue-delay-2026-10-21/) in its worst session since its 2010 listing, at a near nine-year low of A$5.35 [2][4].

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](https://shattered.io/nextdc-pauses-uncontracted-projects-m3-melbourne-a140m-2026/) [4][5]. The next increase in grid supply to M3 is now a 2028 event [4].

*Chart: **NextDC closed back above the raid's average cost within three sessions** Column chart of NextDC closing share prices: A$5.35 on October 21, A$6.53 on November 4, A$9.85 on November 5 and A$10.40 on November 9, against the buyers' A$9.22 average cost line.*

*Closing prices on the ASX, in Australian dollars. Sources: Capital Brief, MarketWatch, Certified Strategic, AFR figures via Reddit. [1][2][3][6]*

## 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 [3][6][1]. 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](https://econotimes.com/Digital-Realty-Opens-Vinhedo-Lab-for-High-Density-AI-Systems-1771794) [2][9][7]. The next readings: NextDC's November 20 shareholder meeting, where its spending review lands, and Jemena's February restart date [2][9][7].

*Chart: **Digital Realty's construction spending nearly doubled in the quarter it crossed NextDC shares** Column chart of Digital Realty quarterly capital expenditure from Q4 2024 to Q3 2026, rising from US$0.22 billion to US$1.38 billion, with the September 2026 quarter highlighted.*

*Capital spending in US$ billions by calendar quarter, from Digital Realty's SEC filings. The September 2026 quarter, in which it bought its half of the NextDC stake, was its most expensive for construction since at least late 2024. Source: Digital Realty, quarterly figures from its SEC filings, retrieved 12 November 2026. [10]*

## Takeaway

Goodman Group and Digital Realty paid an average A$9.22 a share for 9.9% of NextDC two weeks after a suspended power line erased A$3 billion, and the stock has already recovered above their cost; a formal bid is the likely next step but sits with the regulators.

## Sources

1. [Capital Brief, "Goodman Group, Digital Realty secure 9.9% stake in NextDC; NextDC says no formal communication received", 10 November 2026](https://www.capitalbrief.com/briefing/goodman-group-digital-realty-secure-99-stake-in-nextdc-632b5cd4-80f5-41e1-abaf-3c3fc1744e33/)
2. [MarketWatch / Dow Jones Newswires, "Digital Realty, Goodman Acquire $476M Stake in Australia's NextDC - Update", 8 November 2026](https://www.marketwatch.com/story/digital-realty-goodman-acquire-476m-stake-in-australia-s-nextdc-update-79db4ce6)
3. [Certified Strategic, "NEXTDC shares close above A$9.50 raid price after 51% jump", 6 November 2026](https://certifiedstrategic.com/insights/nextdc-shares-close-above-raid-price)
4. [Reuters, "Australian AI data centre operator NextDC shares shed 42% on revenue delay, future plans on hold", 21 October 2026](https://www.reuters.com/world/asia-pacific/australian-ai-data-centre-operator-nextdc-shares-shed-44-revenue-delay-2026-10-21/)
5. [Shattered.io, Ryan Cole, "NextDC Pauses Uncontracted Projects, Cuts A$140M", 9 November 2026](https://shattered.io/nextdc-pauses-uncontracted-projects-m3-melbourne-a140m-2026/)
6. [Reddit r/AustralianDataCentres, "NEXTDC share price jumps 51 per cent after Goodman and Digital Realty buy a 7.5 per cent stake at A$9.50" (AFR-sourced figures), 11 November 2026](https://old.reddit.com/r/AustralianDataCentres/comments/1xoskxs/nextdc_share_price_jumps_51_per_cent_after/)
7. [EconoTimes, "Digital Realty Opens Vinhedo Lab for High-Density AI Systems", 12 November 2026](https://econotimes.com/Digital-Realty-Opens-Vinhedo-Lab-for-High-Density-AI-Systems-1771794)
8. [Law360 Australia, Harlan Ockey, "Goodman, Digital Realty Take 9.9% NEXTDC Stake Amid Raid", 9 November 2026](https://www.law360.com/au/articles/2547709?)
9. [Digital Realty Trust, quarterly figures from its SEC filings, retrieved 12 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001297996)
10. [Digital Realty, quarterly figures from its SEC filings, retrieved 12 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001297996)


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Digital Realty and Goodman buy 9.9% of NextDC for A$693 million after its 42% crash — The Inference. Canonical: https://theinference.org/article/digital-realty-and-goodman-buy-9-9-of-nextdc-for-a-693-million-after-its-42-crash