Rival Firms Target Australian Data Centre Operator After Sharp Share Drop

Nextdc Ltd shares recorded their biggest jump since 2010 after rival data center operators launched an after-market share raid in Sydney. A joint venture between Goodman Group and US-listed Digital Realty Trust Inc tried to acquire a 9.9 percent stake at 9.50 Australian dollars per share. Nextdc stated that the offer represented a 45 percent premium over the closing price on Wednesday. The company confirmed it had not received a formal takeover proposal and did not know the final outcome of the share raid, calling the move opportunistic. Nextdc shares faced heavy pressure after a power delay at a Melbourne facility forced the company to cut its earnings guidance by a third in October. Powering that project required Jemena Electricity Networks to install high-voltage transmission poles through inner-city streets. Local residents blocked work trucks with cars and filled in excavation pits, leading to a temporary halt in September. Broader infrastructure pressures are impacting other firms in the sector as well. Goodman cancelled a proposed data center in suburban Sydney due to local pushback. Meanwhile, Firmus Grid Ltd dropped its initial public offering after investors hesitated over a targeted 30 billion Australian dollar valuation.

Context

Data center developers often face complex logistical hurdles when building heavy infrastructure near urban areas. Public opposition and power supply delays can create significant financial risks for companies expanding artificial intelligence capabilities.