NEXTDC has announced its FY26 emissions reduction targets and embodied carbon reduction goals for its M3 and M2 data centre projects, focusing on lower-carbon materials and design optimisation. The company recorded a CUE of 1.10 in FY26, reflecting a 27% reduction in embodied carbon compared to the Stage 1 baseline. NEXTDC aims to reduce embodied carbon by 20% across Stages 2 and 4 of the M3 project, with asphalt mixes containing recycled soft plastics to further reduce emissions. The company also plans to embed these requirements into existing design, procurement, and delivery processes to support sustainability objectives.
Material actions and disclosures
For FY26, NEXTDC facilities consumed approximately 1,665 kL of diesel and 641,115 MWh of electricity. The company’s Scope 1 and Scope 2 GHG emissions were 5,844 tCO2-e. NEXTDC’s Board approved its target to achieve Net Zero Scope 1 and Scope 2 greenhouse gas emissions by 2050. The company’s approach to emissions reduction includes efficient infrastructure design and operations, transitioning to lower-emission energy sources, and robust measurement and reporting of emissions.
NEXTDC’s M3 Data Centre in West Footscray has an internal project goal to reduce embodied carbon by 20% across Stages 2 and 4. This project focuses on lower-carbon materials and design optimisation to achieve this goal. The company has also set asphalt minimum recycled-content targets to further reduce embodied carbon.
Forward commitments
NEXTDC plans to continue assessing lower-emissions fuels, alternative backup power solutions, and emerging technologies as their technical suitability, reliability, availability, and commercial viability develop. The company will also work closely with trade partners and the supply chain to procure low-carbon concrete mixes that meet project specifications.
NEXTDC will develop a Climate Transition Plan in FY27 to further define its emissions reduction pathway, including key assumptions, dependencies, and potential interim milestones.