Australia's largest datacentre operator NextDC announced Wednesday that its planned expansion of the M3 site in Melbourne's west has been delayed to the 2027/28 financial year, pushing back a project to roughly double the facility's size.
The delay stems from community opposition to 22-metre-high power poles that electricity provider Jemena planned to install. The poles are essential infrastructure required to deliver the increased electricity capacity the expanded datacentre needs. NextDC disclosed the setback to the Australian Stock Exchange.
The company had previously announced plans to expand the West Footscray site. The project now faces a multi-year postponement while Jemena pauses construction of the power infrastructure following local objections.
The delay triggered a sharp fall in NextDC's share price.
The expansion delay highlights how local planning resistance can constrain major infrastructure projects even when backed by the country's largest datacentre operator. NextDC operates critical digital infrastructure serving Australian businesses and government agencies, making the electricity capacity at the West Footscray site operationally important to the company's growth strategy.