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NextDC eyes Asian expansion

Brian Karlovsky | Feb. 7, 2014
NextDC chief executive Craig Scroggie outlines 2014 strategy.

"The recent numbers have been pretty spectacular off a pretty low base and they are looking at double digit growth in the next couple of years," he said.

"Everybody has a Cloud story and the reason they will prosper is because they perform a valuable role acting as an independent data centre provider."

He said it was their approach to data diversity had made them attractive to channel players, but indicated they would be cautious in face of expansion.

"That's why they are attractive to a Telstra or a Di Data or any of the channel partners," he said.

"I would imagine they would be planning an Asia Pacific expansion, but I also think they would be wanting to bed down their Australian operations.

"With datacentres you have to be spot on."

The company is also riding high on the back of national deals with NEC and Telstra, which has led to murmerings of possible expansion in the Northern Territory and South Australia where NEC is known to be particularly active.

But despite demand for regional facilities, Scroggie said there were no announcements to make at this stage.

"We have still got some growth capacity in our big five mega facilities and we are looking at opportunities domestically."

However, he said the company would continue to look very closely at expansion in the Asia Pacific.

"There is no question Asia is a very attractive market and many companies are looking to the Asian region for growth," he said.

"We have a lot of customers that would like us to be operating in Asia and providing the data-centre-as-a-service model.

"We are looking internationally, but there are big costs and each market in Asia has new legislative hurdles.

"Each market is a $100 million plus investment.

"We will continue to review the opportunities to expand in the international market, but at this stage we haven't made any announcements."

 

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