Nextdc (ASX:NXT) is set for further contract wins in the second half of fiscal 2026 due to strong demand, according to a Monday note by Jefferies.

On Monday, the company said its pro-forma contracted utilization increased 29% to 316 megawatts, and its forward order book grew 53% to 205 megawatts since June 30, following new customer contract wins.

The new contracts are expected to ramp up between fiscal 2027 and fiscal 2029, with the company's Melbourne sites likely to benefit most, Jefferies said.

However, Jefferies expects the revenue per megawatt from the new contracts to be flat.

The company also raised its fiscal 2026 capital expenditure guidance to AU$2.2 billion to AU$2.4 billion from AU$1.8 billion to AU$2 billion, Jefferies noted.

Jefferies believes that the company's about AU$6 billion debt facility is enough for its pipeline, reducing the need for an equity raise.

The investment firm reaffirmed a buy rating on Nextdc and raised its price target to AU$19.80 from AU$19.50.