NextDC shares plunge 44% after Melbourne power delays force forecast cuts

NextDC shares fell 44% after electricity-network delays at its Melbourne M3 data centre forced the Australian operator to defer contracted revenue and cut 2027 guidance.

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Oct 21, 2026 - 11:36

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Original NEXTDC M3 Melbourne facility photo hosted on NEXTDC's official page. — Image: NEXTDC official M3 Melbourne page

NextDC shares plunge 44% after Melbourne power delays force forecast cuts

Australian data-centre operator NextDC’s shares fell 44% after it cut its revenue outlook and paused new development projects. The company said delays to electricity-network upgrades at its Melbourne M3 asset would defer about A$140 million in contracted customer revenue this financial year.

NextDC now expects 2027 net revenue of A$475 million to A$500 million, excluding the affected M3 contracts, down from A$615 million to A$640 million. Its underlying EBITDA forecast fell to A$245 million to A$265 million from A$385 million to A$410 million.

The company said the next increase in power supply to M3 was expected in 2028. Jemena Electricity Networks suspended parts of the required work after community and stakeholder opposition and does not expect to restart before February 2027.

The Financial Times independently described the move as a 44% fall after a profit warning. NextDC also lowered its 2027 capital-expenditure outlook to A$4.5 billion to A$5 billion and said it would review spending.

Image: NEXTDC official M3 Melbourne page.