Australian data centre developer and operator NextDC is planning to spend around A$900m ($577.13m) in this financial year to cater to the demand for cloud computing, reported The Australian Financial Review (AFR).

The news comes alongside the announcement of NextDC’s financial results for the financial year that ended 30 June 2023.

During the 12 months under review, the company reported a 25% increase in revenue to A$362.4m ($232.46m).

Meanwhile, capital expenditure was up by 14% to A$690.4m ($442.72m).

With 13 operating data centres and nine more under construction, NextDC estimates that it will need to spend between A$850m ($545.06m) and A$900m ($577.13m) this financial year to support those facilities.

According to AFR, NextDC chief executive Craig Scroggie stated that a sizeable investment was needed to support regional expansion in the Sunshine Coast, Darwin, and Adelaide.

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By GlobalData

It was also used to cater to the demand for cloud computing adoption from significant clients such as Google, Microsoft, and Amazon.

“There’s just so much digital infrastructure that needs to be built to support the growth of cloud and artificial intelligence,” Scroggie said.

The company was just starting to work with clients to plan their generative AI infrastructure requirements, he added.

“It is really just starting to become evident how much new digital infrastructure will need to be built every year here in Australia to support the growth of AI,” Scroggie noted.

“We think that the AI wave and demand for digital infrastructure could at least be as big as the cloud, and potentially, one, two, or even three times larger over time.”

This fiscal year, the company anticipates revenue in the region of A$400m ($256.5m) and A$415m ($266.12m).