NextDC's shares fell 39.5% after it cut its annual earnings forecast due to power supply delays at its Melbourne data centre, caused by community opposition and local council issues.
01Summary
- 01NextDC slashed its fiscal 2027 revenue guidance to A$475-A$500 million from A$615-A$640 million.
- 02The company cut its underlying EBITDA forecast to A$245-A$265 million from A$385-A$410 million.
- 03Power supply delays stem from suspended infrastructure upgrades at the M3 Melbourne data centre due to community opposition.
- 04Electricity distributor Jemena does not expect to resume work before February 2027.
- 05Citi warned the delays could affect earnings beyond fiscal 2027.
02Why it matters
This matters as it highlights growing global opposition to data centre construction, which can delay projects and hit company profits, potentially affecting technology infrastructure development and local economies.
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