Initial deployment in Australia’s Northern Territory.Australian data center firm DXN
has signed a deal to provide a ground station company with prefabricated data center modules.
The company, which develops prefabricated modular data centers, has entered into its first Data Center-as-a-Service (DCaaS) agreement with a US-based global provider of satellite earth stations to design, build, and deploy prefabricated technical infrastructure at an initial Northern Territory site.
DcaaS deals involving on-site modules see small data centers delivered to customer sites and leased on a recurring contract, rather than paid for upfront. The arrangement is designed to be similar to the opex-oriented cloud models, rather than a capex-heavy investment model.
Design work has commenced at the first regional Australia site, under the initial purchase order, with a target deployment date of August 2025.
The total contract value for the first site is approximately $3.6 million over five years, including recurring revenue for maintenance and management services for five years with a five-year renewal option.
DXN said there is likely further revenue opportunity with the same unnamed customer across multiple sites in regional Australia.
Shalini Lagrutta, managing director of DXN, said: "DXN's growth opportunity has always been to not only design, build, and sell projects to customers as one-offs, but also to offer managed services on Edge modular prefabricated data center sites.”
She continued: “This contract exemplifies how DXN can add value to our global customer base in Australia by not just building and handing over these infrastructure projects, but also by maintaining and managing them on an ongoing basis. Al has accelerated growth in the space and satellite industry by enhancing data processing, automation, and decision-making, enabling faster image analysis, real-time satellite adjustments, predictive maintenance, and autonomous spacecraft operations-making space technology more efficient, cost-effective, and scalable."
DXN has delivered dozens of containerized modules to customers, including AngloAmerican, gold miner Newcrest in New South Wales, as well as Boeing, Covalent Lithium, and Pilbara Minerals in Western Australia. The company has previously delivered cable landing station modules to Sub.co on the Cocos (Keeling) Islands for the Oman – Australia Cable and to the island of Palau for the Meta/Google-led Echo subsea cable.
DXN has also entered into an agreement to acquire the freehold of the land and building in which its SDC Darwin data center operates for AU$2.1m (US$1.34m). The sale is subject to conditions, including obtaining debt financing for the purchase. The company said it is working with debt financiers, including banks and non-bank lenders, aiming to settle the transaction in 60 days.
“The board is satisfied that executing the freehold option increases shareholder value of the Company's combined freehold land and data center business,” the company said.
DXN has received an independent valuation of AU$10 million (US$6.38m) for the combined data center and freehold option.
ASX-listed DXN currently operates two data centers across Australia in Darwin and Hobart in Tasmania.
The company, formerly known as Data Exchange Network, acquired the Hobart data center from TasmaNet in 2020; the site offers capacity for 30 racks, expandable to 100. The company acquired the Secure Data Centre in Darwin in 2021; at the time, the 350 sqm (3,700 sq ft) bunker facility offered 70 racks with scope to expand to 127 racks.
It previously operated a facility in Sydney but surrendered the lease early in late 2023.
