NextDC Shares Surge 51% as Goodman and Digital Realty Seek Stakes in Australian Data Center Operator

Shares of Australian data center operator NextDC surged 50.84% on Thursday, following news that Goodman Group and U.S.-based Digital Realty were seeking to acquire stakes of up to 9.9% in the company. The move attracted significant market attention, positioning NextDC as a standout performer amid broader weakness in global data center stocks.

According to a regulatory filing, the two companies conducted an aftermarket bookbuild on Wednesday, offering A$9.50 per share. However, NextDC said it was not aware of the final outcome of the share purchases. Its board described the approach as “opportunistic,” particularly given the timing, just two weeks after the company disclosed a power supply delay at its M3 Melbourne data center and revised its fiscal 2027 guidance.

Both Goodman and Digital Realty told investors that they had no current intention of launching a takeover bid for NextDC, although they reserved the right to do so. Their potential investments nevertheless signal interest from two major industry players in the Australian data center market, which continues to attract attention as demand for digital infrastructure expands.

The rally also stood in contrast to the performance of U.S. data center-related stocks. CoreWeave shares fell approximately 9%, while Iren declined around 11.2% on Wednesday. The sell-off followed decisive Democratic victories in the U.S. midterm elections, which increased expectations of tighter regulatory scrutiny and potential restrictions on data center development.

These concerns have raised questions about the pace of the AI infrastructure buildout and the capital required to support it. While U.S. investors reassessed the outlook for data center developers, NextDC received a strong boost from the potential entry of two established industry players.

The sharp divergence highlights how developments at the company level can outweigh broader sector sentiment. For NextDC, the immediate focus will be on the outcome of the proposed share purchases, its ability to address power supply constraints and the execution of its revised growth plans.