Data Exchange shares crash 44% on market update

Data Exchange Network's share price has plunged, after it announced cost blowouts for the construction of two data centres and the resignation of its founder as chief executive.

In a market update to the ASX, the IT service management company said there would be a $550,000 increase in costs for each of the two data centres it plans to build.

The data centres are now estimated to cost $7.5 million each, with one located in Sydney and the other in Melbourne.

It also announced chief executive Peter Christie resigned for “personal reasons”.

Mr Christie served as the Data Exchange’s chief executive since he founded the company in February 2017.

The company appointed Richard Whiting and Simon Forth as interim joint chief executives, effective immediately.

Mr Whiting has been the company’s chief commercial officer since November, prior to that he served as the chief executive of Vocus Group’s Western Region operations.

Mr Forth has been Data Exchange’s chief operating officer since November.

Data Exchange chairman Douglas Loh said the company was fortunate to have to experienced executives to manage sales and pre-commitments and to complete the delivery of its data centres in the interim.

“The management team is well equipped to execute our strategy, which is underpinned by ensuring that the group delivers on its first colocation data centre in Sydney,” Mr Loh said.

The news caused shares in the Balcatta-based Data Exchange to fall 44 per cent to trade at 7 cents each at the close of trade.