NextDC, an Australian data center operator, experienced a significant share price increase of more than 42% on Thursday after Goodman Group and U.S.-listed Digital Realty announced plans to acquire stakes of up to 9.9% in the company. The acquisition was priced at A$9.50 per share, as detailed in a regulatory filing.
This move is seen as 'opportunistic' by NextDC's board, especially following the company's recent announcement of a power supply delay at its M3 Melbourne data center and a revision of its fiscal 2027 guidance. Although Goodman and Digital Realty have stated they do not currently intend to make a takeover bid, they have reserved the right to do so in the future.
The surge in NextDC's stock occurred amidst a downturn in U.S. data center stocks, where CoreWeave and Iren saw declines of approximately 9% and 11.2%, respectively, likely influenced by the recent Democratic victories in the U.S. midterm elections, which raised concerns about increased regulatory scrutiny on data center developments that could impact the growth of AI infrastructure