NextDC primed for AI-driven data centre boom, Morningstar says

NEXTDC

10/03/2026 18:48

** Morningstar says Australian data centre operator NextDC Ltd NXT.AX is positioned to capture sharp lift in data centre demand

** Expects demand to pick up as AI workloads accelerate, flagging scope for Australian operator to expand capacity both at home and across Asia

** Brokerage keeps a fair value estimate of A$17; forecasts revenue to grow about 19% annually over next four years as new facilities come online

** Morningstar expects scale benefits to drive steep jump in profitability for co, projecting adjusted EBITDA margins to climb from 48% in FY25 to roughly 75% by FY30

** All 13 analysts rate the stock "buy" or higher; their median PT is A$20.5, according to data compiled by LSEG

** Stock has risen 2.2% this year, as of last close

 (Reporting by Roshan Thomas in Bengaluru)

 ((Roshan.Thomas@thomsonreuters.com;))