Hedge funds are feasting on NextDC after the share price plunged 41.7 per cent on Wednesday, as the data centre operator was forced to slash its earnings guidance due to extended delays in connecting a Melbourne site to power networks.

The shares tumbled to $5.35 on Wednesday, levels last traded at almost 10 years ago, after the ASX-listed company resumed trading. The company placed the shares on a trading halt on Tuesday pending an update on its M3 data centre in West Footscray, on the outskirts of Melbourne’s CBD.

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