Nov 3, 2026 · 14 min · 8 segments
The global data center market is moving at an insane speed. We're seeing massive multi-billion-dollar AI factory deals and gigawatt-scale campuses, strict new green mandates, and massive market…
James has dodged a bullet this one because he is not here for us to report on the story that we missed over the last week or so, which was Next DC's trials and tribulations.
So this was the news that West Footscray M3 has been delayed or rather the Scaled up capacity.
And there was community pushback, which prevented them getting the power connection to do the full scale up to the 225 megawatts.
Off the back of this, NextDC, so they then published their earnings as a listed company.
And then the capex was also down to and then yeah the stock market was absolutely uh you know wiped them out down to almost 40 42 off the market valuation james's comment which i thought was quite quite succinct way of putting it was there basically being punished for pre-leasing which actually is quite an interesting comparison to if we look at normal stock market movements people are looking at these and we had james roosters on the show talking about how people are looking at these kind of forecasted EBITDAs based on the contracted value of the days in the capacity.
And of course you sign the contract and then you forecast way before it comes online.
And obviously those costs and revenue numbers don't show up for quite a long time afterwards.
But of course, as Drusi put it, the public markets are a lot more studious and a lot more discerning than private markets.
But yes, I've seen quite a few people saying Next DC would be quite a good buy at the moment based on the The cut being far more, and also if you look at the graph of NextDC's stock, it hasn't even shot up in the same way as a Caterpillar or a Schneider or some of these data center adjacent companies.
Even though it's a prime operator, they've actually only had a creep up over the last few years.
So it feels like they're being somewhat unfairly punished for cutting out a lease that they hadn't yet spent much money on.
Microsoft will still find the capacity elsewhere, but that was all over the headline news because the project was canceled.
James has dodged a bullet this one because he is not here for us to report on the story that we missed over the last week or so, which was Next DC's trials and tribulations.
So this was the news that West Footscray M3 has been delayed or rather the Scaled up capacity.
And there was community pushback, which prevented them getting the power connection to do the full scale up to the 225 megawatts.
Off the back of this, NextDC, so they then published their earnings as a listed company.
And then the capex was also down to and then yeah the stock market was absolutely uh you know wiped them out down to almost 40 42 off the market valuation james's comment which i thought was quite quite succinct way of putting it was there basically being punished for pre-leasing which actually is quite an interesting comparison to if we look at normal stock market movements people are looking at these and we had james roosters on the show talking about how people are looking at these kind of forecasted EBITDAs based on the contracted value of the days in the capacity.
And of course you sign the contract and then you forecast way before it comes online.
And obviously those costs and revenue numbers don't show up for quite a long time afterwards.
But of course, as Drusi put it, the public markets are a lot more studious and a lot more discerning than private markets.
But yes, I've seen quite a few people saying Next DC would be quite a good buy at the moment based on the The cut being far more, and also if you look at the graph of NextDC's stock, it hasn't even shot up in the same way as a Caterpillar or a Schneider or some of these data center adjacent companies.
Even though it's a prime operator, they've actually only had a creep up over the last few years.
So it feels like they're being somewhat unfairly punished for cutting out a lease that they hadn't yet spent much money on.
Microsoft will still find the capacity elsewhere, but that was all over the headline news because the project was canceled.
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