NextDC pauses uncontracted projects after Australian data centre woes
Australian data centre operator NextDC announced on Monday it would halt work on all uncontracted projects following setbacks at a Melbourne facility. The decision came after two major rivals, Goodman Group and Digital Realty, finalized a A$715 million ($492 million) stake purchase in the company. Delays and community opposition to the M3 data centre expansion in Melbourne forced NextDC to reduce its earnings forecasts last month, causing its share price to plummet 42%.
NextDC's CEO, Craig Scroggie, stated that the company's top priority is now winning community support for the M3 project, and any project lacking a customer contract will be put on hold. The company had 11 centres in development or planning stages, according to its 2026 annual report. Scroggie emphasized the importance of regaining trust before resuming work.
While Goodman Group and Digital Realty did not plan to launch a takeover offer, they reserved the right to do so and expressed interest in collaborating with NextDC to address its challenges.
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