NextDC shares drop 39.5% after Melbourne power delays cut earnings forecast
Shares of Australian data center operator NextDC dropped 39.5% on Wednesday following a cut to its annual earnings forecast. The downgrade stems from power supply delays at its M3 Melbourne data center caused by local community and stakeholder opposition.
Key points
- NextDC shares plunged 39.5% after cutting fiscal 2027 revenue and EBITDA guidance.
- Power upgrades at the M3 Melbourne data center are suspended amid local community opposition.
- Electricity distributor Jemena does not expect to resume infrastructure work before February 2027.
NextDC lowered its fiscal 2027 revenue guidance to between 475 million Australian dollars and A$500 million, down from earlier expectations of A$615 million to A$640 million. The company also reduced its underlying EBITDA forecast to between A$245 million and A$265 million, compared to the previously forecast A$385 million to A$410 million.
Electricity distributor Jemena suspended infrastructure upgrades at the site and does not expect to resume work before February 2027. Jemena cited safety concerns, restricted site access due to community opposition, and a lack of local council consent pending consultation. Citi noted that these delays, alongside longer timelines for transformer upgrades, could impact NextDC's earnings beyond fiscal 2027.
Australian data center operator NextDC's shares plunge 40% after it slashes earnings forecast
CNBC Technology · 21 October 2026
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