Data-Center Rules Shouldn't Affect NextDC Development
Dow Jones
Sep 23
0406 GMT - NextDC's plans for a fifth Melbourne facility shouldn't be affected by new state government rules on the placement of data centers, Citi analyst Siraj Ahmed says. He points out in a note to clients that Australia's Victoria state has announced new rules prohibiting centers from being built in residential areas. He observes that NextDC's M5 center is set for a site that was originally meant to be a residential development. However, he anticipates no issue since the government's requirement is for centers to be at least 150 meters, or 164 yards, away from any homes. A more pertinent question for Ahmed is whether political pushback against centers eases after November's Victoria state election. Shares in NextDC are up 1.6% at 11.58 Australian dollars.
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