NEXTDC shares rise as Citi sees little impact from Victoria data centre rules
Shares of Australia's NEXTDC Ltd rose as much as 5% to A$11.53, their biggest intraday percentage gain since August 28, hitting their highest level since September 15. Citi said Victoria's new rules on data centre construction in residential zones were unlikely to impact the company's current pipeline.
53, marking their strongest intraday percentage gain since August 28. The stock also touched its highest level since September 15. Citi said Victoria's new rules were unlikely to affect the company's current pipeline and remained positive on the data centre landlord's development plans. On Tuesday, the Victorian government announced a ban on construction of data centres in residential zones.
The brokerage said NEXTDC's new data centre campus plan, which had been under threat, was unlikely to face problems because it is 150 meters from residential areas, the newly mandated buffer. Citi also flagged power generation snags for the company, but said NXT has strong network coverage and a data centre pipeline. 4. Year to date, the stock is down nearly 8%.