​NextDC wins AU$1.79m government datacentre deal

NextDC has secured a 'critical and sensitive' in nature three-year deal to deliver its datacentre services to the federal government.

NextDC has entered into a contract valued at AU$1.79 million with the Australian government for the provision of datacentre services.

The contract is for a three-year term with options for extension.

The win comes as NextDC was named was one of the first four companies to be part of the federal government's Datacentre Facilities Supplies Panel, an initiative launched by the Department of Finance to make it easier for government agencies to procure datacentre services, with better pricing and pre-determined contract terms.

NextDC CEO Craig Scroggie said that due to the "critical and sensitive nature" of the infrastructure, details of the contract will not be made public, but noted that the deal is a "significant achievement" for the company.

"As a member of the Commonwealth Data Centre Facilities Supplies Panel, we are pleased to be supporting the federal government's operations with our nationwide network of next-generation datacentres," he said.

Earlier this month, the company inked a AU$1.4 million deal with the Australian Electoral Commission (AEC) to also provide datacentre services. The five-year deal will see the AEC relocate critical IT infrastructure from its existing Department of Human Services managed datacentre into NextDC's C1 datacentre in Canberra.

These contract wins follow on from NextDC reporting during its full-year 2015 financial year results that it continued to shrink statutory losses. The company reported that revenue was up by 85 percent on last year to AU$60.9 million, and also reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of AU$8 million, a rise of AU$24.1 million on FY14. At the same time, statutory net loss after tax was AU$10.3 million, up from an FY14 net loss after tax of AU$22.9 million.

Contributing to the rise in revenue was datacentre services revenue of AU$58.7 million, jumping 93 percent from FY14.

The company said at the time that new sales and contracts also helped it secure strong momentum during the year, including the one it signed with Microsoft for the connections to its Azure public cloud platform via ExpressRoute.