NextDC sought a trading halt on the ASX on Monday, telling investors it needed to assess the impact of a delay in getting power to its M3 data centre. The company did not give a reason, but Citigroup analyst Siraj Ahmed told a briefing that the halt likely related to Jemena's pause on a power pole project after direct action by residents in Yarraville last month.
Residents blockaded contractor trucks with parked cars, ignored door-knocks and filled excavation pits to prevent the installation of 15-metre-high concrete poles carrying 66,000 volts down residential streets. Jemena bowed to the pressure and paused work in Yarraville to allow consultation.
The M3 site is designed to span 10 hectares in an industrial pocket next to homes. It already covers five hectares and is undergoing a $750 million expansion. Many of the new poles in West Footscray had already been installed, but the high-capacity route remains unfinished.
NextDC company secretary Michael Helmer said in the ASX letter that the board had not yet met to consider the full implications. The trading halt will remain until Wednesday or until a formal disclosure is made.
The delay is a political headache for the Victorian government, which has aggressively courted hyperscale data operators using fast-tracked planning that bypasses municipal councils. Former premier Jacinta Allan and economic development minister Danny Pearson granted approvals in as little as 28 days. The rapid approvals occurred without corresponding planning for major transmission upgrades.
Premier Carroll last month introduced new rules requiring data centres to supply their own renewable energy, use recycled water and be located at least 150 metres from homes. The rules followed growing community opposition.
Resident Jacqui Glover, who lives within 15 metres of the facility's northern boundary, told a Senate inquiry into data centres that the expansion had prioritised corporate growth over local liveability. Local Labor MP Katie Hall has called for a pause on developments.
Nationally, communities have campaigned against nearby data centres. Developer Green Square withdrew a project in Western Australia, the Goodman Group shelved a $1.2 billion facility in Lane Cove, and private developer Firmus abandoned a $44 billion planned float this month.
NextDC operates 17 data centres across Australia. A new $1 billion Port Melbourne facility was approved in just 75 days earlier this year. The company is expected to make its formal market disclosure before trading resumes on Wednesday.