NextDC Shares Plunge 40% After Cutting 2027 EBITDA Forecast to A$245 Million on Melbourne Power Delays
Updated
Updated · CNBC · Oct 21
NextDC Shares Plunge 40% After Cutting 2027 EBITDA Forecast to A$245 Million on Melbourne Power Delays
3 articles · Updated · CNBC · Oct 21
Summary
NextDC sank 39.5% on Wednesday after cutting fiscal 2027 guidance, with revenue now seen at A$475 million to A$500 million and EBITDA at A$245 million to A$265 million.
The downgrade stems from suspended infrastructure upgrades at its M3 Melbourne data center, where power works have stalled amid community opposition, safety concerns and missing local-council consent.
Jemena does not expect to resume work before February 2027, extending the delay to transformer upgrades and constraining power supply needed for the site.
Citi said the disruption could hit earnings beyond fiscal 2027 because approvals for the M3 expansion are also running late.
The setback highlights widening resistance to data-center expansion globally, and leaves NextDC shares heading for an eighth straight weekly decline.
With NextDC shares plummeting, will the clash between fast tech growth and slow grid upgrades force a global rethink of data center investments?
As local protests halt NextDC's Melbourne expansion, could this power grid bottleneck permanently derail Australia's booming AI and cloud infrastructure?