It’s how the industry works - every new MW sold requires capex for the equipment and installing it into the data centre hall. The company makes a return on that investment from the customer contracts that underpins that spend. Higher capex in this situation is great. It’s only really a problem when it’s speculative spending in the hope of later winning deals, but this isn’t the case today as it’s new capex backed by long term contracts. It’s counter intuitive but if they announced a big contract win and DIDN’T upgrade capex guidance, it would mean they had built MW speculatively which is generally not what you want them to do. Aligning capex to deals is the path to riches in DC land
NXT Price at posting:
$8.95 Sentiment: None Disclosure: Not Held
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