Australia’s largest datacentre operator, NextDC, has announced a delay in the expansion of its M3 site in West Footscray, Melbourne, due to community objections regarding the installation of new 22-meter power poles. This decision comes as construction on the project has been paused following protests from local residents.
Delay in Expansion Plans
On Wednesday, NextDC informed the Australian Stock Exchange that the delay in the upgrade of power poles by electricity provider Jemena—which is crucial for meeting the increased electricity demands of the expanded site—will push the expansion timeline back to the 2027/2028 financial year. Following this announcement, NextDC’s share price plummeted from over $9 to $5.69 after exiting a trading halt.
Due to the deferred billing and delivery of contracted capacity at M3, the company has revised its net revenue guidance down to between $475 million and $500 million, a decrease from the previous estimate of $615 million to $640 million.
Reasons for the Delay
NextDC stated that Jemena has suspended the power pole works due to:
- Safety concerns
- Lack of access to sites due to community and stakeholder opposition
- Local council not approving the construction of the new 22-meter poles, which are an increase from the current height of 11 meters
Further community consultations are expected to take place before any approvals can be granted. In response, NextDC and Jemena are exploring alternative options for supplying the increased electricity needs, including potential locations for poles in industrial zones or the possibility of underground power connections.
