NextDC cuts earnings outlook on power delays; shares plunge 39.5%

A power-supply delay at one Melbourne data center has forced Australia’s NextDC to sharply lower its company-wide financial outlook. Shares fell 39.5% on Wednesday after the operator cut its fiscal 2027 revenue and earnings forecasts, citing stalled infrastructure work amid local community and stakeholder opposition, CNBC reported.

A smaller revenue base—and earnings forecast

NextDC now expects revenue of A$475 million to A$500 million for fiscal 2027, down from its previous range of A$615 million to A$640 million. Even the top of the revised range sits below the bottom of the earlier forecast.

The company also lowered its underlying EBITDA forecast to A$245 million–A$265 million, from A$385 million–A$410 million. EBITDA measures earnings before interest, taxes, depreciation and amortization. These figures are revised expectations for the fiscal year, rather than completed financial results.

The power work is suspended

NextDC tied the cuts to its M3 Melbourne facility, where infrastructure upgrades have been suspended amid community opposition. According to the company, electricity distributor Jemena does not expect to resume that work before February 2027. That timing concerns restarting construction, not completing the upgrades.

Jemena cited safety concerns and restricted access to work sites because of community opposition. It also cited a lack of consent from the local council, pending further community consultation. The obstacles therefore involve both access to the places where work must happen and consent for that work.

Citi sees a risk beyond one fiscal year

The revised company forecasts put numbers on the fiscal 2027 impact. Citi’s assessment looks further out: the bank said in a note that the power delays could affect earnings beyond that year, CNBC reported. It pointed to delays in approvals for the M3 expansion and a longer-than-expected timeline for transformer upgrades.