Australia data centre firm NextDC reports rising water, energy use with profit beat

Australian data centre firm NextDC reported a rise in water and energy consumption in the past year, despite increased demand for computing capacity, leading to a profit beat. The company's water usage effectiveness ratio increased to 2.40 litres per kilowatt-hour from 2.25 the previous year, while its power usage effectiveness ratio rose to 1.49 from 1.44.

These metrics have worsened for three consecutive years. NextDC attributed the higher ratios to newly commissioned capacity running cooling systems before full IT deployment, as well as data-reconciliation work uncovering leaks and meter anomalies. The increase in water consumption reflects portfolio growth and heightened activity from operational, expansion, and commissioning projects.

The ratios are closely monitored by lawmakers and voters as indicators of the strain the data centre boom places on limited grid and water resources. Governments and regulators worldwide are implementing measures to freeze, restrict, or ban new data centre construction due to concerns about electricity costs, strained water supplies, land scarcity, and local community burdens.

Canberra is considering mandatory, nationwide standards for data centre energy, water, and location choices, proposing that new centers must generate renewable power instead of relying on the grid. NextDC's revenue grew by 16%, and the company turned to a profit of A$82.1 million ($59.14 million) for the year ending June, up from a A$60.5 million loss the prior year.

Underlying EBITDA rose by 15% to A$248.8 million, surpassing average analyst forecasts. NextDC's shares rose 3.3% by mid-session on Friday.