Southern Cross secures major data centre expansion

Southern Cross Electrical Engineering (ASX:SXE) announced a strategic expansion, securing new works awards totalling over $150 million alongside a capital raising initiative.

A key driver of this growth is the group's subsidiary, Heyday, which has received a limited letter of authorisation from Multiplex Constructions to immediately commence initial electrical and communications works at NEXTDC’s (ASX:NXT) S4 Data Centre in Horsley Park, New South Wales.

The initial stage encompasses a High Voltage Switching Building, a Security Operations Centre, and two multi-level data hall buildings spanning roughly 60,000sqm.

Additionally, Trivantage Manufacturing has secured a switchboard order from a major data centre operator, prompting further investments into corporate manufacturing capacity.

Southern Cross Electrical Engineering has upgraded its underlying FY26 EBITDA guidance to at least $75 million and projected substantial future growth with an initial FY27 EBITDA forecast of at least $100 million.

To fund the expanding operations, support strategic initiatives, and strengthen its executive leadership team, the company is undertaking a major equity raising program.

The capital structure optimisation includes a fully underwritten institutional placement to raise $150 million, supplemented by a non-underwritten share purchase plan targeting an additional amount of up to $15 million before costs.