NEXTDC's (ASX:NXT) S5 data center development site in New South Wales is expected to get development approval in early 2026, according to a Friday Jefferies note.
Jefferies noted that on Friday, the NSW Department of Planning and Environment approved three data center developments, NXT's S4 site, DigiCo Infrastructure REIT's (ASX:DGT) SYD1 expansion, and Goodman Group's (ASX:GMT) Mascot site.
The investment firm said that there has been increased pressure on State and Federal governments to reduce red tape and fast-track data center developments from industry bodies and key industry figures.
"We expect the DA approval for NXT's S5 site in Macquarie Park is imminent, likely early in the new year, despite earlier pushback from Ryde Council and residents," the note added.