Right Farm, Wrong Cow?, page-6

Hi Smurph, pretty sure you have to re-check those numbers.

I believe S1 & M1 without checking were more like ~$250M invested each.

The ~$8-10M/MW number is Fitout Capex only (on top of Land + Base Build).
It's the incremental Capex that NextDC gets to stretch out as it chooses to fitout each Data Hall + supporting infrastructure based on demand.

That ~$500M money is now spent, and now that the assets are 100% utilized, the return won't add/subtract to NextDC future earnings growth materially going forward.

It's important to separate NextDC the business from its share price. As shareholder's bid up the price as has happened, it has no affect on NextDC Internal Rate of Return, but does result in a lower shareholder return for the individual.

Tangentally S1 & M1 partly rose to fame at a time of pre Hyperscale cloud adoption/when it was going through its infancy. When company's in there come up for technology, strategy, etc refreshes, do some of them move to AWS, Azure, etc. This should take a long time to find out, maybe ~10 years.

The argument is not unreasonable that if you expect growth in cloud,etc to be so great and drive growth in DataCentre's, does it not make sense to invest in a basket of the cloud players? Or atleast do relative value comparisons.

Main thing I would say is diversification.