DXN Lands $5.3M Contract to Build Cable Landing Station in South America
DXN secures A$5.3 million cable landing station contract with global internet company
DXN Limited (ASX: DXN) has secured a A$5.3 million (US$3.8 million) contract to design, supply, and commission a modular cable landing station for a global internet company deploying infrastructure in South America. This marks a repeat order from the same customer and represents the company’s first entry into the Latin American market.
The contract involves manufacturing DXN’s proprietary prefabricated cable landing station solution at its Welshpool facility in Western Australia, with commissioning targeted for Q1 CY2027. The repeat engagement signals customer confidence in DXN’s execution track record for mission-critical subsea cable infrastructure.
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What are cable landing stations and why do they matter?
Cable landing stations are specialised data centre facilities that serve as the physical connection point between subsea fibre optic cables and terrestrial internet networks. They function as critical “on-ramps” where international internet traffic transitions from underwater cables to land-based infrastructure.
These facilities require highly specialised design considerations:
- Environmental resilience — Protection against coastal conditions including salt spray, humidity, and extreme weather events
- Security requirements — Multi-layered physical and digital security protocols to protect critical international communications infrastructure
- Power reliability — Redundant power systems with uninterruptible power supply and backup generation to ensure zero downtime
- Carrier-grade availability — Design standards that support 99.999% uptime requirements for global internet backbone connectivity
Cable landing stations represent a specialised, high-margin segment of the data centre market with structural growth tailwinds tied to global bandwidth demand driven by cloud computing, streaming services, and artificial intelligence workloads.
DXN’s modular advantage
DXN’s approach differs fundamentally from traditional construction methods through its prefabricated, factory-built platform. The company delivers a complete turnkey solution incorporating proprietary modules with fully integrated power distribution, cooling systems, fire suppression, security infrastructure, and monitoring capabilities.
Manufacturing occurs in a controlled factory environment in Western Australia, allowing quality assurance protocols not achievable with field construction. Once completed, modules undergo factory acceptance testing before shipment to the deployment location, where a DXN project team manages on-site installation and commissioning.
This modular approach offers compressed delivery timelines and factory-controlled quality, making DXN competitive for deployments in remote or logistically challenging coastal locations where traditional construction faces extended timelines and execution risk.
Structural tailwinds driving CLS demand
Research commissioned by DXN from Oliver Wyman projects significant expansion in cable landing station deployments across Asia Pacific, driven by multiple structural demand factors.
| Region | Announced Sites (by 2028) | Forecasted Additional Sites | Total Potential (by 2029) |
|---|---|---|---|
| Asia Pacific | 127 | 99 | 210+ |
The research identifies three primary demand drivers reshaping the global subsea cable landscape. Hyperscale technology companies are expanding internet backbone capacity to support cloud services and AI inference workloads. Geopolitical factors are creating demand for new cable routes that bypass traditional pathways, requiring additional landing infrastructure. Sovereign connectivity requirements are driving governments to invest in domestic cable landing capacity to reduce dependence on third-party infrastructure.
Importantly, many cable landing station projects remain confidential during planning phases for strategic and competitive reasons, meaning announced pipelines represent only a fraction of total market opportunity. The 127 already announced sites scheduled for deployment by 2028 provide visibility on near-term demand, whilst the 99 additional forecasted sites reflect historical deployment patterns that typically remain unannounced until construction commences.
DXN is positioned at the intersection of two structural growth themes: hyperscale internet capacity rollout and the enabling role of CLS infrastructure connecting continents. Each new subsea cable deployed globally requires at least one fully equipped landing station on each terminus, creating repeatable demand for modular solutions.
South America entry opens new addressable market
This contract represents DXN’s first deployment in Latin America, expanding the company’s geographic footprint beyond its established Asia Pacific base. Major technology companies are investing heavily in new subsea cable routes connecting South America with Africa, the Middle East, and Asia Pacific to create diverse, resilient global network topologies.
Each new cable route requires one or more cable landing stations equipped with the power infrastructure, cooling systems, and security protocols necessary to support mission-critical international communications. The modular approach DXN delivers is particularly well-suited to deployments in emerging markets where traditional construction timelines and logistics present execution challenges.
Geographic diversification reduces concentration risk and expands DXN’s addressable market beyond Asia Pacific, where the company has established a track record delivering cable landing stations and edge data centres. Entry into Latin America positions DXN to pursue additional opportunities as hyperscale operators continue global infrastructure expansion.
Project timeline and execution pathway
The contract establishes a clear milestone pathway from manufacturing through to commissioning:
- Contract signed (April 2026)
- Manufacturing commences immediately from Welshpool, Western Australia facility
- Factory acceptance testing and dispatch targeted for H2 CY2026
- Delivery and site commissioning in South America targeted for Q1 CY2027
Manufacturing is commencing immediately following contract execution, with modules progressing through DXN’s established production workflow. Factory acceptance testing will validate that all integrated systems meet specification requirements before modules are packaged for international shipment.
The H2 CY2026 dispatch timeline provides approximately six to eight months for manufacturing and quality assurance, consistent with DXN’s standard production schedules for complex modular data centre deployments. Following delivery to the South American deployment site, the DXN project team will manage installation, integration with local power and network infrastructure, and final commissioning before handover to the customer.
This clear execution timeline provides visibility on revenue recognition and demonstrates DXN’s project management capability for complex international deployments requiring coordination across multiple jurisdictions and regulatory frameworks.
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Management outlook
Shalini Lagrutta, Managing Director
“This contract is a significant milestone for DXN, marking our entry into the Latin American market and highlighting our capability to win and deliver complex, mission-critical infrastructure for some of the world’s largest technology companies. Cable landing stations are a growing and highly specialised segment of the modular data centre market, and we have invested significant engineering effort in developing a solution that genuinely meets the exacting requirements of subsea cable operators. We look forward to delivering this project on schedule and to the highest quality standards, and to building on this relationship as our Customer continues its global infrastructure expansion.”
The Managing Director’s commentary emphasises the specialised engineering investment DXN has made in developing cable landing station solutions that meet the exacting standards required by subsea cable operators. These requirements extend beyond standard data centre specifications to include coastal environmental resilience, carrier-grade reliability protocols, and security frameworks appropriate for international communications infrastructure.
Importantly, management frames this contract within the context of an ongoing customer relationship, noting the forward-looking opportunity to support the customer’s continued global infrastructure expansion. Repeat business from a hyperscale technology company validates DXN’s execution capability and positions the company for additional orders as the customer deploys new subsea cable routes globally.
DXN’s business model at a glance
DXN operates through three core divisions that collectively provide a vertically integrated model spanning design, engineering, manufacturing, and operations:
- Modular Division — Prefabricated edge data centres and critical infrastructure, including cable landing stations, telecom facilities, and remote deployments for mining and defence applications
- Data Centre Operations — Owned facilities in Darwin and Hobart providing colocation, monitoring, and managed hosting services
- DCaaS — Capital-light facility-as-a-service model offering bespoke data centre and satellite ground station solutions with end-to-end management, maintenance, and 24/7 monitoring
The Modular Division drives this contract, leveraging DXN’s manufacturing capability and engineering expertise developed through deployments across Asia Pacific. The vertically integrated model allows DXN to control the entire value chain from initial design through to ongoing operations support, differentiating the company from pure-play manufacturers or operators.
Ready to Learn More About DXN’s Cable Landing Station Expansion?
This A$5.3 million contract marks DXN’s entry into Latin America and validates its modular approach to mission-critical subsea infrastructure. The repeat engagement from a global internet company demonstrates confidence in DXN’s execution capability as hyperscale operators expand global network capacity.
To explore DXN’s pipeline of cable landing station opportunities and modular data centre deployments across Asia Pacific and beyond, visit the DXN investor centre for company announcements, project updates, and investment analysis.