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Australia’s largest datacentre operator NextDCs shares dive as Melbourne expansion delayed

The Guardian October 21, 2026 8 views
Australia’s largest datacentre operator NextDCs shares dive as Melbourne expansion delayed

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NextDC, Australia’s largest datacentre operator, has announced that the planned expansion of its West Footscray site in Melbourne’s west will be postponed until the 2027/28 financial year. The delay follows community objections to the installation of 22‑metre high power poles that are required to supply the additional electricity needed for the enlarged facility.

In a statement to the Australian Stock Exchange, NextDC said the upgrade of the power infrastructure by electricity provider Jemena had been paused after local residents raised concerns about the visual impact of the new poles. The company’s expansion, which would have doubled the size of the M3 datacentre, is now on hold while the dispute is resolved.

The West Footscray site is a key part of NextDC’s growth strategy, aimed at meeting rising demand for cloud and data‑storage services across the region. The company had planned to increase its capacity significantly before the community protest triggered a reassessment of the project timeline.

While the announcement was met with disappointment from investors, NextDC confirmed that it remains committed to the expansion once the power infrastructure issue is resolved. The company will continue to engage with local stakeholders to address their concerns and move the project forward.

As a result of the delay, the company’s next major investment in the site will not commence until the 2027/28 financial year, pushing back the anticipated benefits of the expanded datacentre for several years.

<small>Source: The Guardian — read the original story there.</small>

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