NextDC slashes earnings forecast as Melbourne data centre delayed

Summarised from 2 outlets · Updated 21 Oct, 03:38 · Archive

Australian data centre operator NextDC cut its annual earnings forecast by roughly 40% citing power supply delays at its Melbourne facility.

Australian data centre operator NextDC saw its share price plunge 39.5% on Wednesday after announcing a sharp cut to its annual earnings forecast. The company reduced its fiscal 2027 revenue guidance to between A$475 million and A$500 million, from an earlier forecast of A$615 million to A$640 million, and cut its underlying EBITDA forecast to A$245 million to A$265 million from A$385 million to A$410 million.

The earnings cut stems from delays to power supply upgrades at the company's M3 Melbourne data centre. Electricity distributor Jemena suspended infrastructure upgrade work at the site amid community opposition, citing safety concerns and restricted access to work sites. The local council has also withheld consent pending further community consultation. Jemena does not expect to resume work before February 2027.

Analysts warned that the power delays could affect earnings beyond fiscal 2027, with further delays expected to approvals for the M3 expansion and a longer-than-expected timeline for transformer upgrades. The dispute reflects growing opposition to data centre buildouts worldwide, amid concerns over their impact on local communities and the environment. NextDC shares have declined for seven straight weeks.

How it is being reported

• Australian data centre group falls 44% on profit warningNextDC plunge adds to sector woes as Nvidia holds talks over injecting capital into Firmus after failed IPOFinancial Times · 21 Oct, 03:00
• Australian data center operator NextDC's shares plunge 40% after it slashes earnings forecastThe company cited power supply delays at its Melbourne facility amid local community and stakeholder opposition for lowering earnings forecast.CNBC · 21 Oct, 02:44

In this story: NextDC · Melbourne · Jemena · Australia

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