Data centre construction slows near the capital

Construction of new data centres near the capital has slowed sharply, with developers pointing to grid connection queues rather than weak demand.

The project had stalled twice before, most recently last year, when a change in leadership at Brightline Robotics put several initiatives on hold. This time, the company says, the budget is approved and the contracts are signed.

The move comes as the sector adjusts to a year of slower growth. Analysts at Ashgrove Research estimate that spending in the category rose just 3 percent in the first half, compared with 11 percent a year earlier.

"The companies that will come out of this stronger are the ones that treated the slowdown as a chance to fix their cost base, not as a reason to freeze," said Felix Brandt, who follows the industry for Ashgrove Research.

How long the queue is

Executives at Brightline Robotics said the plan will be rolled out in three stages, beginning with its largest markets. A second stage, covering smaller regional units, is scheduled for the second quarter of next year.

Not every investor is convinced. Shares in Brightline Robotics slipped 2 percent after the announcement, with some analysts questioning whether the projected savings of $48 million a year are achievable on the stated timeline.

The figures are modest by the standards of the largest players but significant for a company of this size. According to its latest filing, Brightline Robotics generated $48 million in revenue over the past twelve months, with margins improving in each of the last three quarters.