Data Center Blues
It’s not all positive in tech-land though as Australian data center firm Nextdc ($NXT) slashed its full-year earnings guidance by a third and placed development plans on hold after protests delayed power supply to one of its major projects in Melbourne that saw the firm pause all new development work, a caution sign for other global projects that have run into opposition.
Its shares plunged almost 42% in Sydney — the most since listing in 2010 — cutting its value to about A$4 billion ($2.8 billion) while its bonds fell into distressed territory.
The delay forces the company to defer roughly A$140 million of contracted customer revenue in this financial year. Management has announced it will pause all new development projects. It has 17 in operation and 11 in development or planning.
Source: Bloomberg and MarketWatch
