Credit: NextDC
ASX-listed colocation provider NextDC has quietly launched an office in Singapore and another in Japan to explore local opportunities.
However, the company told shareholders that work in Singapore is currently on hold while the Singapore Government undertakes a review of the data centre industry. Depending on this review's result, NextDC may continue to evaluate local opportunities.
ARN understands that NextDC's COO Matt Howard is in charge of the operations in Singapore.
NextDC has also established an office in Tokyo, Japan, to explore the market opportunities, a work that is currently underway.
The costs related to these markets studies amounted to $800,000 under the company's earnings.
"In FY19 we undertook preliminary reviews of emerging market opportunities in both Singapore and Japan to assess future possible expansion," the company told shareholders on 29 August.
NextDC said that it is still early days but it sees "exciting opportunities to leverage" its success in Australia.
"Like all activities we undertake, we view these opportunities as generational in nature and remind ourselves people frequently overestimate what they can achieve in one year and underestimate what can be built in a decade."
NextDC closed the financial year ended 30 June with a $9.8 million loss after tax following a year of data centre expansion.
The colocation provider’s results marked a 248 per cent dip from its $6.6 million profit last year. Total revenue for the year was $179.3 million and EBITDA rose year-on-year by 2.5 per cent to $79 million.
