Australia’s largest datacentre operator NextDC’s shares dive as Melbourne expansion delayed

Australia's leading datacentre operator, NextDC, has seen its shares plummet as plans for a major expansion in Melbourne's west have been delayed. The expansion of the M3 site, which aims to increase its capacity from 60 megawatts to 225 megawatts, is now set to be pushed back to the 2027/2028 financial year due to a halt in construction of 22-meter-high power poles.

Jemena, the electricity provider, has delayed the upgrade of these poles following community protests and safety concerns. This has led NextDC to reduce its net revenue guidance to between $475 million and $500 million, down from the previous estimate of between $615 million and $640 million. The share price fell from over $9 to $5.69 following the news.

The company is exploring alternative solutions, such as constructing poles in industrial zones or underground connections, while they continue construction of the data halls. NextDC CEO Craig Scroggie expressed disappointment in the delay, attributing it to changes in government leadership and cabinet reshuffles. However, he remains hopeful that the approval will be granted in February 2027.

West Footscray resident and Citizens of Tottenham member Sean Brown criticized the community's efforts to raise concerns about the project, stating that they aim to secure a fair outcome for the residents and ensure a proper safety framework is in place. Despite the setback, Brown and others remain committed to their cause.