Tech giant shares plunge 40pc after delays to Melbourne data centre
Community opposition to one of Victoria's largest data centres has seen the value of shares in NextDC plummet.
The value of a multi-billion-dollar Australian tech firm, NextDC, has plummeted after facing significant delays to its data centre plans in Melbourne's inner west. The company, which owns 17 operational data centres in the country and has nine more in development or planning stages, notified the stock exchange that its net earnings and revenue forecasts have been slashed by tens of millions of dollars.
The company's stock price plummeted by 40 percent following the announcement. The delays are due to power supply and government approval issues, particularly the installation of power poles required for the M3 data centre in West Footscray. Community opposition, citing concerns over electricity use and noise pollution, has been a major factor in the delays, with power poles installation halted in Yarravile due to resident resistance.
NextDC's CEO, Craig Scroggie, stated that the company is exploring various options, including undergrounding the cables, though this is not an immediate solution. The company has also put new development projects and land acquisitions on hold for the foreseeable future.
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