NextDC, Australia's largest datacentre operator, announced Wednesday that it has delayed expansion of its west Melbourne facility after community opposition blocked construction of 22-metre power poles needed to supply electricity to the site.
The company told the Australian Stock Exchange that the M3 datacentre expansion, originally planned to double the facility's size, will now occur in the 2027/2028 financial year instead of the previously scheduled timeline. The delay stems from electricity provider Jemena pausing construction of the upgraded power poles following community protest. NextDC said the poles are essential to deliver the increased electricity the expanded West Footscray site requires.
The announcement prompted a sharp decline in NextDC's share price, according to The Guardian report.
The delay reflects the tension between Australia's rapid demand for datacentre capacity and local opposition to infrastructure projects. Datacentres require substantial electricity supply, and infrastructure upgrades like high-voltage power poles can face resistance from nearby residents and communities concerned about visual impact and other effects.
NextDC has not disclosed alternative solutions to the power supply constraint, and no timeline for resolving the community objections has been announced. The company operates multiple datacentre sites across Australia but the Melbourne facility represents a significant expansion opportunity in one of the country's major metropolitan regions.