NextDC Shares Rocket 48% After Goodman and Digital Realty Launch Surprise Raid on Australian Data Center Firm

Shares of NextDC Ltd. soared 48% on Thursday, their biggest one-day gain in years, after Australian property giant Goodman Group and U.S.-listed Digital Realty Trust moved overnight to buy up to almost 10% of the data center operator at a steep premium.

NextDC shares rose A$3.14 to close at A$9.67, after trading between A$9.07 and A$9.77. About 79.2 million shares changed hands, an extraordinary volume for the stock, and the rally lifted the company's market value to roughly A$7.3 billion.

NextDC was the top performer on the benchmark index, rising 48.24%, on a day when the S&P/ASX 200 closed up 2.61% at 9,065.1 points.

The overnight share raid

The surge followed an unexpected move after Wednesday's close. NextDC said it had noted an aftermarket share raid by Ackland Investments No.1 Pty Limited, a trust vehicle owned in equal shares by Goodman Group and Digital Realty Trust.

The two companies sought to acquire up to 9.9% of NextDC's shares at A$9.50 apiece, a 45.5% premium to the previous close of A$6.53. Reuters, citing a term sheet, reported the proposed stake purchase was worth about A$715 million, or US$501.14 million.

Thursday's closing price ended above the A$9.50 raid price, suggesting some investors are betting on further corporate activity. NextDC said it did not know the outcome of the share raid.

Board calls it 'opportunistic'

NextDC's board responded cautiously. "The Board considers this an opportunistic move by Goodman and Digital Realty," the company said, noting the raid came two weeks after its Oct. 21 announcement of a power delay at its M3 Melbourne data center and revised fiscal 2027 guidance, and was conducted through a book build open only to institutional investors.

The board said it was not in possession of any takeover proposal and that any bona fide approaches would be considered on their merits and in the best interests of all shareholders.

The buyers left the door open to more. Goodman and Digital Realty told investors they had no current intention of making a formal takeover bid but explicitly reserved the right to do so, a caveat markets interpreted as leaving room for a full offer.

Rebound from October collapse

The rally followed a brutal stretch for NextDC shareholders. The company's Oct. 21 announcement of power delays at M3 Melbourne forced a deep cut to fiscal 2027 earnings guidance and triggered a roughly 40% single-day collapse in the share price.

The stock had lost more than 40% this year, with most of the losses coming in late October after the company paused all future developments and slashed its revenue forecasts, wiping out about A$3 billion in market value in a single day.

Even after Thursday's surge, the shares remain about 37% lower than a year ago.

Counter to U.S. data center selloff

The jump stood in sharp contrast to data center stocks in the United States. U.S. data center stocks sold off overnight, with CoreWeave falling about 9% and Iren dropping roughly 11.2% on Wednesday, after sweeping Democratic victories in the midterm elections raised expectations of tighter scrutiny and possible restrictions on data center development.

Regulators closer to home are also watching the sector. A New South Wales parliamentary inquiry released a report on Thursday identifying critical planning gaps for data centers and recommending 100% hourly renewable energy mandates. The inquiry flagged power and water risks but rejected a moratorium.

Strategic interest

Goodman, Australia's largest listed property group, has made data centers a central part of its development strategy, while Digital Realty is one of the world's largest data center operators. Their joint stake gives the pair a meaningful foothold in a key Australian competitor whose valuation was hit hard by its recent guidance cut.

Goodman Group rose 2%, while Digital Realty gained 2.6% in New York trading on Wednesday.

What comes next

Investors will look for confirmation of how many shares the raid secured, which must be disclosed if the buyers cross the 5% substantial holding threshold. Analysts will also watch for any formal approach for the whole company and for updates on the M3 Melbourne power timeline that triggered October's selloff.