DC Two secures contracts worth $1.77m for eco-friendly, transportable and modular data centres
DC Two has developed a shipping container sized data centre that allows deployment in almost any location.
Data centre, cloud and software business, DC Two (ASX: DC2) has revealed a number of agreements to supply data centre co-location services worth an estimated $1,775,358 over a 36-month period.
These fixed term agreements build on an initial fixed term agreement announced in June 2021 for an estimated $926,376 over five years.
Customers from these agreements will become some of the first in Australia to utilise DC Two’s in-house developed, high density and transportable data centres that are being deployed ‘behind the meter’ at sustainable power generation sites across the country.
DC Two chief executive officer Justin Thomas said these fixed term agreements “clearly illustrate” the company’s modular and transportable data centres are viable revenue source within the business.
“We are now experiencing increased demand for these services from a wide range of industry sectors,” he added.
Cost advantage
The transportable data centres are about the size of a shipping container, only require power and data connectivity and are suitable for high performance or supercomputing specific workloads.
Mr Thomas noted there are huge cost advantages to their unique offering.
“Having our data centres draw power from ‘behind the meter’ at wind and solar farms allows us to provide customers with globally competitive hosting and power prices, which decrease the operational costs for clients, and provide a turnkey solution for companies seeking to lower their environmental impact.”
Mr Thomas said the appeal of lower cost operations is supercharged by being able to provide a “green-powered” service to Australian customers.
“Accessing globally competitive green power prices offers our customers a true eco-friendly data centre and provides a turnkey solution for individuals and corporations seeking to enhance their eco-credentials.”
It’s no secret that traditional data centres require large amounts of energy necessary for operation and there is increasing environmental concerns about the vast amount of energy consumption required to power today’s digital economy.
With this innovative business model gaining rapid momentum for DC Two, Mr Thomas says that the company’s ambitions go beyond the local Australian market.
“DC Two hosting rates at our modular data centres are some of the lowest anywhere in Australia and, more importantly, internationally competitive, giving the company access to a potentially global customer base which we are very interested in pursuing aggressively in the future.”
Bibra Lake data centre to transform the DC Two business
Coinciding with DC Two’s deployment of modular data centres, the company has also been busy developing its large scale Bibra Lake facility which is expected to ignite the company’s revenue growth trajectory.
DC Two brought the largely finished facility online in April 2021 in a stage one configuration and is now in the process of re-applying for tier III accreditation with the Uptime Institute, which will help secure government contracts, mid-market and enterprise customers.
“We are on track to become the only company in Western Australia with an Uptime Institute accredited tier III data centre and ISO 27001 ISMS accredited cloud platform,” Mr Thomas pointed out.
“Once the data centre comes online, we have the scope and strategy in place to scale and will target a range of large enterprise customers from multiple industries.”
Recurring revenue growth
All this development has not affected DC Two’s ability to grow the business, having recently achieved its third consecutive quarter of recurring revenue growth.
DC Two reported its Q4 FY 2021 recurring revenue increased 9.3% to $472,000 over Q3 FY 2021 results.
Actual cash receipts received from customers during the period totalled $632,000.
“Since listing on the ASX, we have increased our quarterly cash receipts in conjunction with bringing two data centres online within seven months.”
“This highlights our commercial strategy is working and proves our ability to grow revenue while simultaneously developing multiple assets that will add future company value,” Mr Thomas said.