NEXTDC renews its board and Scroggie forgoes FY27 bonuses

At a glance

• NEXTDC chairman Douglas Flynn will retire once a successor is in place, and the board is seeking new directors ideally with data centre, energy or infrastructure experience.

• Chief executive Craig Scroggie has given up his FY27 short-term and long-term incentives, including share rights worth up to A$3.77 million.

• Directors withdrew a A$300,000 increase to their fee pool and took an immediate 10 per cent cut in their own fees.

• The changes follow a power delay at NEXTDC's M3 campus in Melbourne, where network company Jemena paused pole upgrades at the end of August after residents objected and the council withheld road consent.

• NEXTDC and Jemena are working on other routes for the power, and Jemena does not expect to restart before February 2027.

NEXTDC told the ASX before the market opened on 26 October 2026 that it is renewing its board. Douglas Flynn, chairman since 2014, will retire once a successor is in place, and NEXTDC expects to appoint a new chairman and one more independent director in the first quarter of 2027, ideally with data centre, energy, infrastructure or capital management experience. Stuart Davis, who chairs the board's remuneration and nomination committee, intends to stand down once they arrive.

Chief executive Craig Scroggie will forgo his FY27 short-term and long-term incentives, with nothing paid in their place. The long-term award alone was worth up to A$3.77 million, twice his fixed pay. The directors withdrew a proposed A$300,000 increase to their fee pool and cut their own fees by 10 per cent.

The board said it "recognises and shares investors' disappointment" over the M3 Melbourne power delay and revised guidance it announced on 21 October, when NEXTDC shares fell 42 per cent and lost almost A$3 billion in market value. Flynn named working with M3's customer and electricity distributor Jemena to minimise the impact of the delay as one of the board's two priorities, alongside earning back investors' confidence.

Shareholders meet on 20 November. Because 71.88 per cent of votes went against NEXTDC's remuneration report in 2025, a vote of 25 per cent or more against the FY26 report would put a conditional board spill resolution to the meeting. The board recommends voting against it.

Source: NEXTDC ASX releases of 21 and 26 October 2026; NEXTDC 2026 notice of meeting.

Jemena is reworking the power route to M3

Jemena paused its pole upgrades around M3 in West Footscray at the end of August, after residents and Maribyrnong City Council raised concerns about the size of the poles and the consultation. It does not expect to restart before February 2027, which moves M3's next power increase to FY28. The capacity remains under contract, and RBC Capital Markets analyst Tom Beadle said the delay was outside NEXTDC's control, AAP reported.

NEXTDC is working with Jemena on alternatives, including new pole locations and other routes. NEXTDC had A$8.675 billion of liquidity at 30 September and remains within its debt covenants.

Consultation extends to the street works

The concerns at M3 centred on the network works on the streets outside the campus: the size of the poles, and how residents were told about them. Data centres pay up front for their connections, including the network upgrades needed to reach them, industry body Data Centres Australia told the ABC.

Developers are putting community terms on the table earlier in the process. CDC has offered Wagga Wagga up to A$225 million in community benefits for its 1.4GW campus, A$75 million more than the council required, and AirTrunk's offer at Kurri Kurri comes to about 1 per cent of its reported A$3.7 billion project.

Anthropic has pledged community agreements worth tens of millions at each of its data centres, and says it will work within the standards governments set. Victoria's data centre action plan will require new sites to sit at least 150 metres from homes and pay for their grid upgrades, Queensland has said it will require a community benefit agreement with the council before a data centre lodges, and the national rule maker is consulting on what data centres pay for grid upgrades, with a draft decision due by 1 April 2027.

Operators and network companies are likely to extend that early engagement to the poles, lines and street works that connect a campus, since the M3 pause came from works outside it. Jemena's work on M3, due to restart no earlier than February 2027, will be the first test.

What to watch

The 20 November meeting. Shareholders vote on the remuneration report, and NEXTDC will announce the outcome of its capital program review by then.

Jemena's route. The route Jemena takes when it restarts will set M3's timing.

The M3 expansion decision. NEXTDC expects the Victorian Government's planning decision after the state election on 28 November 2026.

The new directors. NEXTDC expects to name both in the first quarter of 2027.