NextDC shares plunge 44% after power delays force FY27 guidance cut

Australian data centre operator NextDC shed 44% in early trading on Wednesday, wiping about A$3.1 billion from its market value, after sharply cutting its FY27 revenue and earnings guidance over power-supply delays at its M3 Melbourne site, Reuters reported.

NextDC said delays to electricity network upgrades meant about A$140 million in contracted customer revenue would be deferred this financial year. The company now expects 2027 net revenue of A$475 million to A$500 million, down from A$615 million to A$640 million, and cut 2027 underlying EBITDA guidance to A$245 million to A$265 million from A$385 million to A$410 million — both ranges excluding the affected M3 contracts.

Electricity distributor Jemena suspended parts of the network works needed to boost power supply to M3 after community and stakeholder opposition, and does not expect to resume before February 2027, pushing the next increase in grid supply into 2028. AAP reported shares fell 40.2% to an eight-year low of $5.48 in early trading, with the company cutting 2026/27 capital expenditure by $750 million and pausing new developments and land purchases.

“Whilst out of the company’s control, delays to power supply and development applications relating to NXT’s M3 data centre is evidence that community concerns around data centre developments present a real risk to the timing of delivery of contracted capacity for data centre owners,” RBC Capital Markets analyst Tom Beadle told Reuters.

Read next

• £16.5bn data centre planned for former Chapelcross nuclear plant site
• Anthropic in talks with Nscale over second $45bn AI data centre deal