Goodman Group and Digital Realty have offered AU$715 million (US$499.7m) for a 9.9 percent stake in beleaguered Australian data center operator NextDC.

The two companies have joined forces to make the offer, which was revealed via a term sheet submitted to the Australian Stock Exchange after trading finished on Wednesday, as reported by Reuters and others.

ASX-listed NextDC’s share price has fallen sharply by as much as 45 percent in recent weeks. In October, it revealed it had been forced to defer AU$140 million (US$97.9m) of customer revenue because of delays to electricity network upgrade work at a data center in Melbourne.

The M3 facility in West Footscray had been due to be expanded, but the installation of high electricity poles, which would have enabled more power to flow to the facility, has been delayed until the 2027/28 financial year after community protests. Local councilors have yet to give the go-ahead for the upgrade, which would see the size of the power poles in the area double from 11 to 22 meters (72 feet). Electricity provider Jemena is also investigating safety concerns that have been raised about the upgrade.

NextDC opened M3 in 2022, and the expansion would see capacity at the site grow from 60MW to 225MW. After the news of the delay was revealed, the company said it would be pausing new development projects and land acquisitions across its portfolio for the foreseeable future.

The company has 20 data centers in operation or development across Australia. It also has sites in planning or under evaluation in Japan, Thailand, Malaysia, and Singapore. It raised AU$500 million (US$347m) in debt financing in July.

Australia-based Goodman Group, which develops data centers and commercial property, and US data center firm Digital Realty have offered AU$9.50 (US$6.65) per share for a piece of NextDC, a 45.5 percent premium ⁠to NextDC's valuation when trading ceased on Wednesday.

According to the term sheet, the companies will not make a full takeover bid or seek a controlling stake in NextDC, but this could change in the future. JP Morgan is leading the offer.

DCD has contacted NextDC, Goodman Group, and Digital Realty for comment.