Australia's DXN Sells Tasmanian Data Center, Secures American Samoa Submarine Cable Contract
2026-07-03 15:30
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en.Wedoany.com Reported - Australian data center operator DXN has completed a divestiture, selling its colocation facility in Tasmania to focus resources on its prefabricated modular data center business.

The ASX-listed company announced the sale of the Hobart site for AUD 520,000 (approximately USD 359,000). The buyer, DADT Pty Ltd, plans to continue operating the facility.

DXN transferred the assets of its subsidiary TAS Pty ASOT, which owns and operates the TAS01 facility, to DADT Pty Ltd. DXN acquired the data center in 2020 from regional internet service provider TasmaNet for AUD 2.7 million (USD 1.8 million at the time). Located at 40-50 Innovation Drive, Dowsing Point, within the Tasmanian Technology Park, the facility is configured with approximately 35 racks, with a theoretical total capacity of up to 100 racks.

DXN stated that the divestiture aims to sharpen the company's focus on delivering prefabricated modular data centers. Managing Director Shalini Lagrutta noted that the company's growth is driven by its prefabricated modular platform, and recycling capital from non-core colocation assets helps concentrate capital and management resources on areas that create the greatest value for shareholders, while ensuring the facility's clients receive good service under the new owner.

DXN (formerly Data Exchange Network) still operates a data center in Darwin. It previously operated a facility in Sydney but terminated the lease early at the end of 2023.

DXN has also recently secured a new contract for a Cable Landing Station (CLS) to serve the American Samoa Telecommunications Authority (ASTCA). The contract is valued at AUD 1 million (approximately USD 690,000) and covers the design, manufacture, delivery, and commissioning of the CLS. The CLS will support the expansion and resilience of American Samoa's telecommunications infrastructure.

The CLS will be used to host the upcoming La Vasa submarine fiber optic cable system. This is a USD 45 million submarine fiber system connecting American Samoa, Fiji, and French Polynesia, owned and operated by the American Samoa Telecommunications Authority. The La Vasa system will connect to Google's upcoming Bulikula system, which is reportedly expected to have 16 fiber pairs, each with a minimum design capacity of 6 Tbps, and is planned to be operational in the third quarter of 2026.

CLS manufacturing will commence immediately after the contract signing, with the facility delivery date expected to be March 2027. DXN Managing Director Lagrutta stated that the company is honored to be selected as a partner for this critical telecommunications infrastructure project, and the award demonstrates its capability to deliver prefabricated critical infrastructure solutions for telecom operators and government clients in the Asia-Pacific region.

DXN reports that it has delivered over 100 modular data centers to date, with clients including logistics company DP World, Anglo American, New South Wales gold miner Newcrest, Stanmore Coal, as well as Boeing, Covalent Lithium, Pilbara Minerals, and satellite company Globalstar. The company previously delivered a CLS module for Sub.co on the Cocos (Keeling) Islands for the Oman-Australia cable, a CLS module for Palau for the Meta/Google-led Echo submarine cable, and was a CLS supplier for the East Micronesia Cable System (EMCS). Additionally, the company announced last year that it would deliver a CLS to consulting firm APTelecom for an unnamed international digital infrastructure project.

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