Why the expansion slipped

Jemena suspended construction of the 22-metre power poles needed for the M3 Melbourne datacentre upgrade, and NextDC told the Australian Stock Exchange on Wednesday that the resulting delay pushes the West Footscray expansion to the 2027/2028 financial year. The poles would stand 22 metres, up from the 11 metres in place today, according to Jemena.

The electricity provider gave several reasons for halting the works:

• •safety concerns and a lack of access to sites arising from community and stakeholder opposition
• •the local council has not approved the taller poles while consultations continue

NextDC and Jemena are now looking at alternatives, including running poles through industrial zones or connecting via underground power.

Guidance cut and the size of the project at stake

The company reduced its net revenue guidance to between $475m and $500m, from between $615m and $640m, citing deferred billing and delivery of contracted M3 capacity. The expansion would lift M3 from 60 megawatts of capacity today to 225MW, and NextDC has already sold that processing power to customers. Once complete, the works are expected to double the size of the site to 10 hectares.

Planning permit limbo

Data hall construction is continuing despite the grid delay, NextDC said. The Victorian government's planning decision on a permit for stages six and seven, however, is taking longer than expected.

Chief executive Craig Scroggie told investors on Wednesday that the earliest approval would likely be February 2027, with Victoria entering caretaker mode before the 28 November state election. The permit request has sat with the state since February 2026, and Scroggie pointed to the leadership change in Victoria, where Ben Carroll has replaced Jacinta Allen as premier, and the reshuffle that followed it as the reason approvals have slowed.

Scroggie said it was "disappointing to be facing this particular technical challenge", but said he was confident the expansion could be approved. He also said "We comply with all of the development requirements under the planning rules" and acknowledged community concerns requiring more consultation over the site's operation, development and construction.

The community's side

West Footscray residents have voiced datacentre community opposition before: in May they raised concerns about the scale of the expansion, construction noise and the potential use of diesel generators during power outages. Sean Brown, a West Footscray resident and member of Citizens of Tottenham, said the community had not set out to reduce shareholder value; its goal was a fair outcome and a proper safety framework, which residents still lack.

Brown said the campaign would continue regardless of who holds the planning portfolio after the election.

Whoever becomes planning minister, he said, will be hearing from the community, and the project would be "a pretty toxic thing to sign off on."

NextDC and Jemena are exploring alternatives, including poles through industrial zones or underground power connections, while the state planning decision on stages six and seven remains pending ahead of the 28 November Victorian election.