Goodman and Digital Realty seek 9.9% of NEXTDC at A$9.50

At a glance

• Goodman Group and Digital Realty have sent JPMorgan to buy "no more than" 9.9 per cent of NEXTDC's shares at A$9.50 each, the Australian Financial Review reported on 4 November 2026.

• A$9.50 is about 45 per cent above NEXTDC's last trade of A$6.53 on 4 November. The report was published after the market closed.

• Goodman told the ASX on 4 November that its global power bank had grown to 6.6GW, with 3.6GW of secured power. Data centres under construction are 79 per cent of its A$19.7 billion of development work.

• NEXTDC cut its FY27 guidance on 21 October after Jemena suspended power works for its M3 Melbourne campus. Its shares closed 41.7 per cent lower that day.

• A stake of 9.9 per cent sits below the 20 per cent level at which Australia's takeover rules generally require a formal bid.

Goodman Group and Digital Realty are seeking up to 9.9 per cent of NEXTDC, the ASX-listed data centre operator. The pair offered A$9.50 a share, the Australian Financial Review's Street Talk column reported on 4 November 2026. They sent JPMorgan to collect "no more than" 9.9 per cent of the register. The AFR's updated report puts the stake at A$730 million.

The offer is about 45 per cent above NEXTDC's last trade of A$6.53 on 4 November, when the shares rose 4.1 per cent. The report was published after the market closed. The AFR said NEXTDC's shares had fallen nearly 60 per cent this year. On our read, a premium of that size for a minority stake values NEXTDC's contracted capacity and pipeline above its share price.

The approach comes two weeks after NEXTDC cut its FY27 guidance over power to M3 Melbourne. NEXTDC lowered its FY27 revenue and earnings guidance on 21 October after Jemena, the electricity distributor for NEXTDC M3, suspended its power works for the campus. The shares closed 41.7 per cent lower that day. NEXTDC says the delayed M3 capacity remains under contract. Chairman Douglas Flynn will retire once a successor is in place, as NEXTDC renews its board.

Goodman says its data centre program is on track

Goodman describes itself as the largest property group on the ASX, owning, developing and managing logistics properties and data centres in major global cities. Its total portfolio increased to A$90.0 billion at 30 September, it said.

Goodman lodged its first-quarter update with the ASX on the morning of 4 November, before the AFR report. Its global power bank grew to 6.6GW, with secured power at 3.6GW, the same as at its FY26 results. Goodman said its data centre program "remains on track to deliver on forecast dates".

Data centres under construction are 79 per cent of Goodman's A$19.7 billion of development work in progress. Customers have pre-committed to 31 per cent of that work, up from 25 per cent, JPMorgan analyst Richard Jones said in the AFR. Goodman is targeting 9 per cent growth in operating earnings per security in FY27, with a distribution target of 30.0 cents.

"Demand for data centres continues to grow, while constraints around power, land, planning, infrastructure delivery are limiting supply," chief executive Greg Goodman said.

A 9.9 per cent stake stays under the foreign investment and takeover lines

Under the Corporations Act, a holder generally cannot lift its voting power in a listed company above 20 per cent, law firm Allens explains. The main routes past that line are a takeover bid or another permitted exception. A holding of up to 9.9 per cent stays under that level.

Anyone who reaches 5 per cent of an ASX-listed company must lodge a substantial holding notice within two business days, and a further notice after each change of 1 percentage point.

A foreign person may need to notify the Treasurer before acquiring a direct interest in a national security business, law firm Holding Redlich explains. That line is generally 10 per cent or more, whatever the deal is worth. A data centre can be one if it stores or processes government or other business-critical data, the firm says. NEXTDC holds Certified Strategic enclaves under the government's Hosting Certification Framework. Of the two buyers, Digital Realty is the foreign investor. On our read, under the current rules the 9.9 per cent cap keeps the stake below both the 10 per cent foreign investment line and the 20 per cent takeover line.

What to watch

• A substantial holding notice. If Goodman and Digital Realty pass 5 per cent of NEXTDC, a notice is due within two business days.

• NEXTDC's response. Any statement from NEXTDC to the ASX on the approach.

• Trading on 5 November. The first session after the report, measured against the A$9.50 price.