Australia’s largest datacentre operator NextDC’s shares dive as Melbourne expansion delayed
News Source
•Wed, 21 Oct 2026 04:58:25 GMT
📰 What Happened
Shares in NextDC, Australia's biggest data centre company, fell sharply on Wednesday. They dropped from more than $9 to $5.69 after the company said its Melbourne expansion is delayed.
The M3 site in West Footscray needs new power lines. The electricity supplier, Jemena, has paused work on 22-metre poles after community objections and a council refusal. NextDC also cut its revenue forecast for the year.
🔍 The Backstory
NextDC planned to grow the site from 60 megawatts of capacity to 225MW, and it has already sold that power to customers. The expansion would double the site to 10 hectares. Residents worry about noise, size and diesel generators.
Planning approval has been with the Victorian government since February. NextDC blames a change of premier and the coming state election for the wait, and does not expect a decision before February 2027.
🎯 Why It Matters
Data centres power AI and cloud services, but they need huge amounts of electricity. This fight shows what happens when that demand meets worried neighbours.
Shares in NextDC, Australia's biggest data centre company, fell sharply on Wednesday. They dropped from more than $9 to $5.69 after the company said its Melbourne expansion is delayed.
The M3 site in West Footscray needs new power lines. The electricity supplier, Jemena, has paused work on 22-metre poles after community objections and a council refusal. NextDC also cut its revenue forecast for the year.
NextDC planned to grow the site from 60 megawatts of capacity to 225MW, and it has already sold that power to customers. The expansion would double the site to 10 hectares. Residents worry about noise, size and diesel generators.
Planning approval has been with the Victorian government since February. NextDC blames a change of premier and the coming state election for the wait, and does not expect a decision before February 2027.
Data centres power AI and cloud services, but they need huge amounts of electricity. This fight shows what happens when that demand meets worried neighbours.