NEXTDC Shares Fall 44% After Melbourne Power Delay

NEXTDC shares fell 44% on Wednesday after a delayed power supply at its M3 data center in Melbourne prompted forecast cuts, Reuters reports. The decline erased about A$3.1 billion from the Australian data center operator's market value in early trading.

The delay will defer about A$140 million in contracted customer revenue from the current financial year. Network operator Jemena suspended parts of the required electricity work following opposition from community members and other stakeholders, and does not expect to resume it before February 2027. The next power supply increase for M3 is now expected in 2028.

NEXTDC cut its fiscal 2027 net revenue forecast to A$475 million to A$500 million from A$615 million to A$640 million. It lowered its underlying EBITDA forecast to A$245 million to A$265 million from A$385 million to A$410 million.

The company also reduced its capital spending forecast to A$4.5 billion to A$5 billion from A$5.25 billion to A$5.75 billion. It paused new development projects and land purchases and will consider selling selected development sites.