NextDC Shares Plunge 40% as Melbourne Data Centre Delays Hit Earnings

NextDC Shares Plunge 40% as Melbourne Data Centre Delays Hit Earnings

Shares in NextDC, Australia's largest listed data centre operator, crashed around 40 percent on Wednesday after the company slashed its earnings forecasts, blaming power grid delays at its flagship Melbourne facility.

NextDC told the Australian Securities Exchange it was cutting its fiscal 2027 net revenue guidance to between A$475 million and A$500 million, down from A$615 million to A$640 million, and underlying EBITDA to A$245 million–A$265 million from A$385 million–A$410 million. About A$140 million of contracted revenue was removed from the outlook, erasing roughly A$3.1 billion from the company's market value.

The trouble centres on the M3 campus in West Footscray, Melbourne, where electricity distributor Jemena suspended network upgrade works after community opposition to 22-metre power poles and safety concerns. The company does not expect work to resume before February 2027, pushing the next increase in grid power supply into fiscal 2028.

Chief executive Craig Scroggie said projects without customer contracts would be paused and capital redirected to contracted capacity. The selloff dragged the stock to multi-year lows and rattled investors already nervous about the pace of AI infrastructure spending.

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