SynopsisNEXTDC is set to secure over one billion Australian dollars by issuing convertible notes, a strategic decision aimed at bolstering its data centre infrastructure, particularly for AI applications. With an expected rise in capital expenditure in the upcoming years, this initiative addresses the growing challenges of power and water availability facing Australian data centre developers.ReutersThe NextDC S6 data centre stands in Sydney, Australia.Australia's NEXTDC said on Wednesday it seeks to raise A$1.1 billion ($795.63 million) through convertible notes, its third fundraising in just over four months, as the data centre operator ramps up investment in AI infrastructure.Here ‌are some ⁠details:* ⁠The notes will mature on September 17, 2031, ​and carry a holder put option in September 2029. ​The initial conversion price will be set at a 32.5%-37.5% premium to the reference share price.* ​NEXTDC also intends to ⁠enter capped ‌call transactions with an indicative cap ​price ​70% above the reference share price ⁠to reduce potential dilution.* Proceeds will fund ​the ongoing expansion of local data centre ​pipeline, cost of the capped call deals and transaction costs, with the remainder for general corporate use.* NEXTDC expects fiscal 2027 capital expenditure of A$5.25 billion to ‌A$5.75 billion, up about 55% to 70% from fiscal 2026 spending, as it ​boosts investment ​to meet ⁠AI-driven demand.* The capital raising comes as Australian data centre developers face growing constraints on power and water access that threaten to slow a nationwide data centre expansion.* NEXTDC shares ended 2.2% higher at A$12.79 on Wednesday.($1 = 1.3826 Australian dollars) ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now