Macquarie Technology Group vs NEXTDC
NEXTDC holds the stronger position because a giant cannot simply replicate its data centre network, while Macquarie Technology Group faces a real chance of being copied.
Macquarie Technology Group
Australian data centre, cloud and telecom operator hosting government and enterprise workloads
NEXTDC
Runs data centers across Australia and Asia Pacific for cloud, enterprise, and AI customers
Dimension by dimension
| Dimension | Macquarie Technology Group | NEXTDC |
|---|---|---|
| Staying power of the core product | Runs Australian data centres and cloud hosting for government and enterprise clients, a role tied to sovereign certification requirements. | Runs data centres across Australia and Asia Pacific for cloud, enterprise, and AI customers, with revenue growing 13% year over year in the latest half. |
| Exposure to AI absorbing the product | AI is unlikely to absorb its data centre and hosting business; AI workloads are more often a source of demand than a threat. | Same picture: AI is unlikely to absorb its data centre business, and AI customers are part of its growth. |
| How easily a giant could copy them | A giant could possibly replicate its sovereign data centre and hosting setup. | Its scale and positioning are described as blocked from easy replication by a giant. |
| Pressure from rivals | Faces direct competition from NEXTDC and Canberra Data Centres for sovereign-certified customers, plus declining margins in its Telecom segment. | Faces AirTrunk, a Blackstone and CPPIB backed operator with over 1.2GW of capacity, competing for the same hyperscale contracts. |
| Profitability | FY25 revenue of A$369.6m produced EBITDA of A$113.6m and net profit of A$34-35m. | Trailing revenue of A$463.6m came with a net loss of A$57.23m. |
| Scale and market value | No market capitalisation figure given; FY25 revenue sits at A$369.6m. | Market capitalisation of A$11.35bn with trailing revenue of A$463.6m and 1H26 net revenue up 13% year over year to A$189.2m. |
Questions people ask
- Macquarie Technology Group vs NEXTDC, which is more exposed to AI replacing its business?
- Neither is exposed in that way. Both Macquarie Technology Group and NEXTDC are described as unlikely to have AI absorb their product, since AI workloads tend to add demand for data centre capacity rather than replace the service.
- Which company is harder for a giant to copy, Macquarie Technology Group or NEXTDC?
- NEXTDC is harder to copy, listed as blocked from easy replication, while Macquarie Technology Group is listed as possible to copy by a giant.
- Is Macquarie Technology Group or NEXTDC more profitable?
- Macquarie Technology Group is currently the more profitable of the two, posting FY25 net profit of A$34-35m on revenue of A$369.6m. NEXTDC posted a trailing net loss of A$57.23m despite higher revenue of A$463.6m.
- Who faces bigger competitive threats, Macquarie Technology Group or NEXTDC?
- Macquarie Technology Group competes with NEXTDC itself and Canberra Data Centres for sovereign-certified customers, while also managing margin decline in its Telecom segment. NEXTDC's main rival is AirTrunk, a well-funded operator backed by Blackstone and CPPIB with over 1.2GW of capacity.
- Which company is bigger, Macquarie Technology Group or NEXTDC?
- NEXTDC is the larger company by most available measures, with a market capitalisation of A$11.35bn and trailing revenue of A$463.6m, compared to Macquarie Technology Group's FY25 revenue of A$369.6m.
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