Shares of Australian data centre operator NextDC fall 42% after a grid upgrade is suspended over residents' objections
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
A lack of consent from local residents, and of grid capacity, can stop data centre construction and hit their owners.
According to Fortune, the electricity network company Jemena suspended the grid improvements needed to increase power to NextDC's M3 data centre in Melbourne, citing objections from residents and the lack of local council consent. NextDC cut its revenue forecast from A$615–640 million to A$475–500 million, reduced capital expenditure by A$750 million, and put land purchases and new projects on hold. Fortune links the fall to broader investor worries about data centre stocks: Firmus recently cancelled its IPO in Australia, and AirTrunk postponed a listing in Singapore.
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