Why the Nextdc Ltd share price is near a record high

Nextdc Ltd (ASX:NXT) is leveraged to businesses ever-growing demand for the storage of data online.

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Nextdc Ltd (ASX: NXT) is heading towards its November 22 AGM with its share price up 36% YTD. 

Nextdc Ltd also announced on 16 October that its B2 Brisbane data centre had become the first in Australia to receive Uptime Institute Tier IV Certification of Constructed Facility (TCCF). The Uptime Institute is the IT industry's most trusted and adopted Global Standard for the design, build and operation of data storage centres. 

The Uptime Institute website shows the B2 Brisbane facility to be one of only forty data centres worldwide to have reached this peak level of certification.

In announcing record financial results for the financial year ended June 30 2017, Nextdc Ltd had flagged its intention to seek Tier IV certification (TCCF) for each of the company's three new data storage centres, being B2 Brisbane, M2 Melbourne and S2 Sydney.

B2 Brisbane is also the first Tier Certified data centre, globally, with a Fault Tolerant N+1 redundant IP-DRUPS electrical system.

Nextdc is a technology company, which is engaged in the development and operation of independent data centres in Australia.

Shares were trading at $4.97, a new year-to-date high on volume of 1.22m shares. Consensus amongst analysts has the stock as outperform or buy recommendations.

Motley Fool contributor Martin Beauchamp has no financial interest in any company mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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