Australian data center firm NextDC is looking to raise new funds.

The company this week announced the launch of an AU$1 billion (US$692.8m) wholesale offer of subordinated hybrid securities to support its growth strategy. NextDC said the funds will support key initiatives, including the development and expansion of data centers.

The offer is supported by a AU$1 billion binding commitment from Canadian investment firm La Caisse.

NextDC CEO Craig Scroggie said: "The announcement of the hybrid securities offer and the La Caisse commitment represent another step toward NextDC delivering on a material step-change in the scale of our business as we deliver on the Company's contracted forward order book across the period to FY29 and make further investments across the portfolio of new projects. We are delighted with this binding commitment from La Caisse, a long-term investor with deep experience in infrastructure, as further validation of our growth strategy."

Emmanuel Jaclot, La Caisse's EVP and head of infrastructure and sustainability, added: "This commitment will help underpin NextDC's construction program, supporting growing demand for digital infrastructure in Australia and adding to La Caisse's long track record in partnering with high-quality infrastructure operators through their growth phase. We see this as a promising first step toward a long-term partnership between La Caisse and NextDC."

NextDC said the hybrid securities are “deeply subordinated instruments,” ranking junior to all the company’s existing and future debt obligations – including the senior debt facilities and the potential issue of wholesale notes – and senior only to the company's ordinary shares and any other equity securities.

Barrenjoey is acting as sole Structuring Adviser, Lead Manager, and Offer Agent for NextDC. Cadence Advisory is acting as independent financial adviser and Mallesons as legal adviser.

NextDC operates or is developing 20 data centers across Australia, including in Sydney, Melbourne, Brisbane, Perth, Port Hedland, Canberra, Adelaide, the Sunshine Coast, and Darwin. Beyond Australia, NextDC currently has sites in planning or under evaluation in Tokyo, Japan; Bangkok, Thailand; Johor and Kuala Lumpur, Malaysia; and Singapore.

La Caisse, formerly CDPQ and officially Caisse de dépôt et placement du Québec, has assets totaling C$517bn (US$378bn). Founded by the Quebec government, the firm is the second-largest pension fund in Canada.