DXN secures ~A$4.8 million Cable Landing Station contract
DXN Limited (ASX: DXN) has entered into a binding contract valued at approximately A$4.8 million (approximately US$3.4 million) with a global internet company (the “Customer”) for the design, supply and commissioning of a modular Cable Landing Station (“CLS”) solution. The CLS is to be deployed to a Pacific region site under U.S jurisdiction.
The order is the fourth placed by the same global Customer. The Customer is described as a leading global internet company and is not named in the announcement.
Key deal points
- Contract value: approximately A$4.8 million (approximately US$3.4 million)
- Scope: DXN will design, engineer, manufacture and commission a complete turnkey CLS solution
- Manufacturing: expected to commence immediately
- Delivery to site: expected in Q1 FY28
DXN said the Customer’s identity is not information a reasonable person would expect to have a material effect on the price or value of its securities. It also confirmed the announcement contains all material information relevant to assessing the contract’s impact.
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What DXN will deliver under the contract
Turnkey modular CLS scope
The solution is built on DXN’s proprietary prefabricated module platform. It is consistent with the type of carrier-grade, high-availability modular CLS infrastructure DXN has successfully delivered for its customers.
The modules incorporate fully integrated systems for:
- Power
- Cooling
- Fire suppression
- Security
- Monitoring
Standardised engineering for this customer
Engineering solutions have been standardised for this Customer, enabling time and cost savings across design, manufacturing, supply chain and delivery. That standardisation follows a run of repeat orders, with this contract the fourth.
The Customer’s earlier South America order took DXN into the Latin American market for the first time, with manufacturing at the Welshpool facility and commissioning targeted for early calendar 2027.
Managing Director Shalini Lagrutta commented on the relationship and the solution:
Shalini Lagrutta, Managing Director, DXN
“With this being the fourth contract with our global internet Customer, we now have a deep relationship and understanding of the customer requirements and have been able to help standardize a solution fit for purpose for their global deployment, that is prefabricated, modular and standardized from start to finish…”
Why modular CLS and repeat orders matter
A Cable Landing Station is the point where subsea cables come ashore and connect to terrestrial networks. It is critical internet backbone infrastructure, which is why the standards applied to its construction are exacting.
According to DXN, its modular approach provides a compelling alternative to traditional construction for CLS deployments. The company cites three advantages:
- Compressed delivery timelines
- Factory-controlled quality assurance
- The ability to deploy in remote or logistically challenging locations
The repeat order is the clearest proof point in the announcement. DXN said repeat engagement by the Customer reflects confidence in its ability to deliver timely execution, to specification, including the exacting standards required for critical internet backbone infrastructure.
The company also said the Customer’s profile reflects DXN’s growing reputation as a trusted supplier to hyperscale and tier-1 technology operators. It positions DXN as a specialist provider at the intersection of two high-growth infrastructure themes: the global rollout of hyperscale internet capacity and the critical enabling role of CLS in connecting continents.
Ms Lagrutta added in the same statement:
Shalini Lagrutta, Managing Director, DXN
“…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.”
What happens next for DXN
DXN is a vertically integrated manufacturer and operator of modular data centres in Asia Pacific. The company outlined the following steps for the project:
- Manufacturing of the modules commences immediately following contract signing, leveraging DXN’s Malaysian and Western Australian facilities.
- Factory acceptance testing is expected to be completed before delivery.
- Delivery of the modules to the Pacific region site under U.S jurisdiction is expected in Q1 FY28.
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