Investor doubts over AI boom spark concerns about sector's growth
NEXTDC's shares fell 42 per cent in a single day after the company revealed delays in getting power to a proposed expansion of its data centre in Melbourne's inner-west. The incident has highlighted investor doubts over the artificial intelligence boom.
A neighbourhood dispute over power poles and a failed float have signalled investor doubts over the artificial intelligence boom, with experts warning that the sector's growth may be hindered by community opposition and valuation concerns.
Shares in data centre operator NEXTDC fell 42 per cent in a single day after the company revealed that delays in getting power to a proposed expansion of its massive complex in inner-west Melbourne meant its future earnings would be cut by a third.
A neighbourhood dispute and an act of civil disobedience
A neighbourhood dispute and an act of civil disobedience, residents parking their cars in the street to deny trucks access, had stopped the march of industrial-scale power poles that would provide the juice for the next stage of the data centre.
The site of the NextDC data centre in West Footscray has become a focal point for community concerns over the impact of large-scale data centres on local infrastructure and the environment.
Investor doubts over AI valuations
Investors are feeling the financial consequences of their doubts, with the proposed float of AI data centre company Firmus being pulled after it failed to gain traction with large investors.