DXN has taken a key step towards exiting its physical data centre business, starting with its Olympic Park facility in Sydney, to allow it to focus on its modular data centre business.
The company has also announced a $5.5 million award to supply cable landing stations for “a consortium of government owned enterprises”.
In an announcement [pdf] to the Australian Securities Exchange, the company said it has signed a deed of surrender with the landlord of its 5 Parkview Drive, Olympic Park space.
It will begin vacating the 5.5MW, 4351 square metre space in December, with the exit due for completion in February 2024.
DXN said the move is expected to save it around $1.4 million annually, with the cost of decommissioning modular equipment in the facility expected to be covered by the sale of the modules.
Some customers will relocate to another site in Sydney where they will still be serviced by DXN.
The company did not detail who its customers will be for the cable landing station contract, saying only that subject to contractual negotiations, delivery would be within 12 months of commencement.
Earlier this year, the company announced [pdf] that it had won a $2.1 million contract for a cable landing station in Timor-Leste to help connect that country to the North-West Cable System.