NextDC's stock crashes 40 percent after data centre delays
NextDC cut revenue forecasts by a third. Power supply delays hit its West Footscray data centre. Shares fell 40 percent.
NextDC is one of Australia's 100 largest listed companies. NextDC announced revenue would drop from $615 million to $475 million this financial year.
Operating profit was cut from $385 million to just $245 million. The reason: a local power company called Jemena suspended work on grid upgrades.
These upgrades are needed for the West Footscray data centre. The delay comes from community backlash over tall power poles.
They carry up to 66,000 volts, about 160 times normal poles. Residents blocked crews by leaving cars and bins in the way.
They said they were not consulted. Jemena paused the project in September.
NextDC now doesn't expect power until 2028. The company has put all new data centre projects on hold.
- 40 percent
- Stock decline
- From $615 million to $475 million
- Revenue cut
- 66,000 volts (160 times normal)
- Pole voltage
- 2028
- Power expected
Why it mattersLocal community action forced a multi-billion-dollar company to rewrite its forecasts. This shows how neighbourhoods can slow down major infrastructure projects.
AustraliaAustralians' power bills and data costs may rise if major tech infrastructure is delayed, and rules now ban data centres within 150 metres of homes.
✓ Claims checked against the source. checked 2 h ago
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