Australia’s largest datacentre operator NextDC’s shares dive as Melbourne expansion delayed
Summary
NextDC, Australia's biggest datacentre operator, has delayed its Melbourne M3 site expansion due to halted power pole upgrades caused by community protests and safety concerns. This delay pushed back the project to 2027/2028 and led to a significant drop in the company’s share price and lowered revenue estimates.Key Facts
- NextDC plans to expand its Melbourne M3 datacentre from 60 megawatts (MW) capacity to 225 MW.
- The expansion depends on electricity upgrades by Jemena, including new 22-metre power poles.
- Jemena paused construction of these poles due to community opposition, safety issues, and lack of council approval.
- NextDC’s shares fell from over $9 to $5.69 after the delay announcement.
- NextDC reduced expected revenue from $615-$640 million to $475-$500 million due to the delayed expansion.
- The local community objects to the large-scale expansion, construction noise, and potential diesel generator use.
- The Victorian government’s approval process for later construction stages is also taking longer than expected.
- NextDC and Jemena are exploring alternatives like placing poles in industrial zones or underground power connections.
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