Great explanation. I think this is a big step forward and having a facility which has the redundancy of support infrastructure is a big plus for its customers.
As I have stated many times over the last 12 months, their success here will hinge on whether they can get customers into the facility! Their growth in recurring revenue has been improving throughout FY22 but little has been reported on the cost side or capacity uptake.
Hopefully the June Quarter update will report on
capacity in terms of installed capacity v contracted capacity and billing utilisation v contracted utilisation.
PUE (Power Usage Effectiveness) or DCiE (Data Centre infrastructure Efficiency) to indicate just how efficient DC2 are compared to others and how efficiency efforts are driving down costs.
Whilst NextDc are a significantly bigger company, their half year reporting gives investors a real look under the bonnet of how they are performing at their various sites.
The next couple of months will be critical to boost shareholder confidence. If they can do that with some informative briefings/announcements followed up with some positive financials then we could start to see the gradual climb in SP towards the IPO price of 20c back in Nov 2020 or even the 30c it was a year ago! Hopefully they won’t disappoint.
DC2 Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
