The NextDC Ltd (ASX: NXT) share price rocketed up to to all-time highs in June, pushing through the $10 barrier before falling slightly at month's end. During June, the Australian data centre operator's market cap exploded through the $5 billion mark, pushing it into the ASX 100 for the first time ever. The share price in June finished at $9.88, up above 70% since its lows in March.
Since the end of June, the NextDC share price has gone from strength to strength, reaching its highest ever price at $11.44. This represents a 73% increase for the year.
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What does NextDC do?
NextDC is an Australian data centre operator that provides data centre outsourcing solutions, connectivity services and infrastructure management software to global cloud-computing businesses, enterprise and government clients.
The company has a strong focus on energy efficiency and sustainability through renewable energy sources and is aiming for its operations to be 100% driven by renewable energy. As such, NextDC's corporate operations have been certified carbon neutral under the Australian Government's Carbon Neutral Initiative.
Yet more contract wins
As recently as 1 July, NextDC announced another material customer contract win in NSW. The company advised that the contracted commitments at its NSW data centre facilities have now increased by approximately 4MW, to more than 36MW-with options to increase to 60MW.
This follows on from contract wins in May and March for Victoria. The company also completed a $672 million equity raise in April.
Commenting on the recent contract wins, CEO and managing director Craig Scroggie stated: "This reflects the nature of NEXTDC's digital infrastructure business model, which continues to build long term value through contracted capacity and tangible asset backing."
The pandemic and resulting rise in remote work arrangements has caused increased demand for NextDC's services, which could help explain the stock's meteoric rise. Brokers are evidently still keen on NextDC shares, with Goldman's analysts retaining their buy rating in early July.
At the time of writing, the NextDC share price is continuing to break barriers as it surges upwards towards the $11.50 mark.
