NEXTDC shares fell 42 per cent in a single day after the company said delays in getting power to its inner-west Melbourne data centre expansion would cut its future earnings by a third. The delays followed residents in Yarraville blocking power company Jemena's crews from working in Sanderson Street, forcing them to abandon the holes they had dug. Separately, the planned listing of AI data centre company Firmus, valued at about $44 billion, fell apart after large investors refused to pay $11 a share.
Data centre company NextDC has blamed delays in increased power supply to its M3 data centre in West Footscray for cutting more than $100 million from its earnings forecast. Its shares fell more than 40 per cent to an eight-year low of $5.48 in early trading on Wednesday 21 October. Chief executive Craig Scroggie said power company Jemena paused network upgrades after community and council opposition, and the increase is now expected during FY28. Jemena paused the roll-out of 15-metre power poles across the inner west in September.
Shares of NextDC, Australia's largest listed data centre developer, fell 40.2 per cent to an eight-year low of $5.48 in early trading on Wednesday. The company said community opposition led power operator Jemena to suspend electricity grid work at its M3 data centre in West Footscray. Jemena has told NextDC it does not intend to resume work before February. NextDC has removed the affected M3 contracts from its 2026/27 earnings guidance and plans to cut capital expenditure by $750 million.
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Property developer Stockland is moving ahead with plans for seven data centre sites, which it says are far from residential areas. It already operates one data centre in Macquarie Park and formed a joint venture with EdgeConneX in March. Chief executive Tarun Gupta told the annual general meeting that the company is working on planning approvals and securing power before making major investments. Stockland has secured 450 megawatts of power for three sites. Stockland shares finished Monday down 4.4 per cent at $4.04.
Singapore-based developer Zerra DC says its proposed $32 billion Western Downs Digital Park near Dalby could operate even during the worst droughts. The four data centres would be air-cooled and draw water from rainwater collected from their roofs, not bores or town water. Chief data centre officer Matt Ward said modelling showed enough rainwater would be caught even in 2019, when Dalby received less than 200 millimetres of rain. Zerra DC has committed to 1,500 construction jobs per year and 1,400 ongoing operational jobs.
