hi Compliance man I like the way you think, cause its important to manage risk to your portfolio.
I don't believe the leading company would abandon the contract for the following reasons. What is more likely if they had issues with NXT pricing is to sign new contracts with other datacentre providers.
1. Because the large customer has a special secured off area inside the NXT data centre and they bring in their own servers, networking etc. To relocate those for additional cost savings and disrupt their customers would be absurd.
2. when I did the analysis 2 years back this is what I captured (see below), if they did migrate their first 4 MW off NXT when it comes up in 5 years they still have about 7.5MW of contacts to continue past June 2018, so from a relationship perspective why you would the leading company go down that path.
6 June 2013 - $60mil over 5 years - 4MW
29th June 2015 - 4MW (2MW S1 + 2MW M1)
25th Jan 2016 - 2MW (1MW S1 + 1MW M1)
6th Sept 2016 - 1.5MW (S1)
3. I also know that the leading company can't find datacentre space quick enough.
NXT Price at posting:
$6.09 Sentiment: Buy Disclosure: Held
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