In short:
The value of a multi-billion-dollar tech giant has plummeted amid ongoing delays to its data centre plans in Melbourne's inner west.
asserted
value → plummet → west
The community backlash has forced NextDC to drastically cut its earnings and revenue forecasts.
asserted
backlash → force → forecasts
NextDC, which has 17 operational data centres in Australia, has another nine centres in the development or planning stages.
asserted
which → have → stages
Community opposition to one of Melbourne's largest hyperscale data centres has smashed the value of one of Australia's biggest companies.
asserted
opposition → smash → companies
A neighbourhood dispute over power poles has forced multi-billion-dollar tech giant NextDC to cut its net earnings and revenue forecasts by tens of millions of dollars, with a planned expansion hit with power supply and government approval delays.
asserted
expansion → force → supply
The company, among Australia's largest 100 listed companies, notified the stock exchange this morning that its net revenue for the current financial year would be slashed by a third — now $475 million to $500 million — down from $615 million to $640 million.
asserted
revenue → list → million
The company's operating profitability was also revised down to $245 million to $265 million, from $385 million to $410 million.
asserted
profitability → revise → million
Following this morning's announcement, NextDC's stock plummeted by 40 per cent.
asserted
stock → follow → cent
NextDC attributed the revised estimates to delays to electricity network upgrades by energy supplier Jemena, required to increase power supply to its M3 data centre in West Footscray.
asserted
NextDC → attribute → Footscray
The West Footscray data centre, located just 15 metres from homes, has long been the subject of community opposition due to concerns over diesel and noise pollution.
asserted
centre → locate → diesel
The installation of towering power poles to accommodate the facility's vast electricity use became another flashpoint earlier this year.
asserted
installation → tower → use
In September, Jemena was forced to halt the installation of 15-metre-high power poles in Yarraville after being met with resistance from residents, several of whom blocked crews by leaving their cars and bins out.
asserted
several → force → cars
The power poles can carry up to 66,000 volts of electricity, approximately 160 times the voltage of previous power poles.
asserted
poles → carry → poles
Local councils and residents argued that they had not been adequately consulted over the upgrades.
asserted
they → argue → upgrades
In its announcement to the ASX on Wednesday morning, NextDC said the delays meant the next grid supply for West Footscray was now not expected until 2028, deferring "the delivery and billing of contracted capacity".
asserted
supply → say → capacity
"Jemena has advised NextDC that it has suspended parts of the network works required for the next increase in grid supply to M3 Melbourne," NextDC chief executive Craig Scroggie said.
"
asserted
Scroggie → advise → Melbourne
We have taken the affected M3 contracts out of FY27 guidance until we can reliably estimate their contribution."
In a call with investors this morning, NextDC's group chief development officer Simon Cooper said the company was "exploring all avenues", including finding alternative locations for the power poles, or placing electrical cables underground.
asserted
company → take → cables
"Undergrounding does take time and there's not an immediate option that we can work on now.
asserted
we → take → that
But it is something that we are absolutely considering," Mr Cooper said.
asserted
Cooper → consider → that
Residents group renews calls for financial compensation
asserted
group → renew → compensation
In March, NextDC applied to Victoria's planning minister under the government's fast-track Development Facilitation Program for the West Footscray centre to double in size to cover a 10-hectare parcel of land.
asserted
centre → apply → land
The company says that application has also been delayed until after the November state election, with the Victorian government "taking longer than expected".
asserted
government → say → election
NextDC said it had put all new development projects and land acquisitions on hold for the foreseeable future and would evaluate capital recycling opportunities, including potential sales of selected development sites.
asserted
it → say → sites
Local residents group Citizens of Tottenham welcomed news of the delays to the M3 data centre, describing it as a battle between David and Goliath.
asserted
group → welcome → David
“It's a significant moment for our area and a reminder that the people living beside these developments cannot simply be pushed aside,” the group's president, Jacqui Glover, said.
asserted
president → live → developments
Fellow member Sean Brown repeated calls for impacted residents to receive remediation and financial compensation, including voluntary buybacks.
asserted
residents → repeat → buybacks
"NextDC M3 doesn't have social licence for the existing building, they certainly don't have it for an expansion," Mr Brown said.
asserted
Brown → have → expansion
"It's now up to NextDC to meaningfully respond to residents' remediation proposal.
asserted
It → respond → proposal
This lack of social licence won't change after 28 November and whoever forms government after then needs to respect this."
On Monday, the data centre operator asked the stock exchange to suspending trading in its shares, citing the need to provide a market update on the impact of the power supply delays.
asserted
operator → change → delays
The company's recent financial results noted a planned capital expenditure outlay of $1.3 billion, and stated that its West Footscray centre had a "total planned capacity upgraded from 200MW to 225MW".
asserted
centre → note → 225MW
Valued at close to $7 billion, NextDC has 17 operational data centres in Australia, with another nine in the development or planning stages.
asserted
NextDC → value → stages
Amid growing resistance to new data centres, the Victorian government announced new regulations to ban data centres near homes and schools, including 150-metre buffer zones, while mandating the use of renewable energy and non-drinking water.
asserted
government → grow → energy
Earlier this month, AI data centre company Firmus spectacularly withdrew its application to list on the ASX, after failing to gather sufficient investor interest.
asserted
Firmus → withdraw → interest
The Aporia
