Australian Data Centre provider NextDC saw its share price drop by more than 40% today after revealing delays, and the possible cancellation, of a Melbourne data centre that’s been beset with community protests and local opposition.
NextDC’s problems, and those of the entire data centre and AI industries – and possibly the entire tech sector – come from a steady erosion of public confidence and their social licence.
The $2bn that NextDC’s shareholders saw evaporate today is a stark illustration that there is a real value to the reputation of organisations and industries with consequences when trust is lost.
Over the next few months, we’re going to find just how much goodwill there is globally towards the tech industry and it may well be NextDC are early examples of some costs the sector has bought upon itself.