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Highlights
NEXTDC (ASX:NXT) announces a major development at Fishermans Bend, Melbourne
The tech firm plans to build an AI-focused data and R&D hub over a large campus
ASX 100 index sees early-day weakness as market reacts to infrastructure spending news
Technology stocks on the ASX 100 began the day with mixed sentiment as NEXTDC Limited (ASX:NXT) revealed plans for a significant data centre and research facility in Melbourne. The project is slated for development within the Fishermans Bend Innovation Precinct, reflecting the company’s intent to strengthen its AI and cloud infrastructure capabilities. The stock, part of both the ASX 200 and ASX 50 indexes, experienced a decline following the announcement.
The development, referred to as the M4 Melbourne project, will transform the former Westgate Park Printing Complex into a high-capacity data centre designed to support artificial intelligence applications and advanced computing infrastructure.
AI-Centric Development with National Significance
The proposed facility will span a substantial area and offer power capabilities suitable for dense AI workloads. It will include a purpose-built "AI Factory" focused on high-performance computing, with rack systems designed for elevated energy requirements. Alongside this, a mission-critical operations centre will be developed to meet requirements for government, defence, and industrial use.
The company also plans to establish a technology excellence centre within the premises to foster collaboration, training, and research in AI. This centre will serve as a hub for advancing digital capability within Australia's growing technology sector.
Sustainability Embedded in Design
NEXTDC has outlined a comprehensive sustainability strategy for the development. The facility is expected to feature liquid cooling systems powered by recycled wastewater and incorporate a district-level waste heat recovery mechanism. Additionally, it will integrate on-site solar energy generation supported by a microgrid architecture, aligning with broader environmental objectives in the infrastructure sector.
The focus on eco-conscious design is aligned with national strategies to promote greener technology initiatives and more resilient power distribution frameworks in data-intensive environments.
Market Response to Capital Commitment
The announcement triggered a dip in NEXTDC shares during morning trading. Market participants assessed the implications of the capital outlay and long-term strategic outlook, with attention also directed toward timelines for construction and regulatory approval. As part of the All Ordinaries, the company’s performance plays a key role in influencing sentiment across large-cap technology names on the Australian Securities Exchange.
The firm has indicated that it anticipates approvals to be secured in the early part of the next calendar year. Once approved, construction is expected to span over a year, culminating in the launch of the new facility.
Executive Remarks on the Vision for the M4 Hub
NEXTDC chief executive Craig Scroggie commented on the initiative’s broader impact, highlighting its alignment with Australia's ambition to become a regional leader in industrial AI and deep tech. The Fishermans Bend Innovation Precinct is positioned to become a centrepiece for AI development and collaboration, driven by national-scale infrastructure and integrated planning.
By anchoring the project in this strategically selected location, the company aims to create what it terms a gravitational pull for talent, innovation, and enterprise engagement.
