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Shares of Australia's NextDC plunged 39.5% on Wednesday after the data center operator slashed its annual earnings forecast, citing power supply delays at its Melbourne facility amid local community and stakeholder opposition. The company lowered its fiscal 2027 revenue guidance to between $475 million Australian dollars and A$500 million, from A$615 million to A$640 million forecast earlier, while cutting its underlying earnings before interest, taxes, depreciation and amortization, or EBITDA, forecast to A$245 million to A$265 million from A$385 million to A$410 million. The delays to power stem from the suspension of infrastructure upgrades at the company's M3 Melbourne data center amid community opposition, with electricity distributor Jemena not expecting to resume work before February 2027, according to NextDC. Jemena cited safety concerns and restricted access to work sites due to community opposition, as well as a lack of consent from the local council pending further community consultation. Citi said in a note that NextDC's power delays could affect earnings beyond fiscal 2027, citing delays to approvals for the M3 expansion and a longer-than-expected timeline for transformer upgrades. The dispute reflects growing opposition to data center buildouts worldwide, amid concerns over their impact on local communities and the environment. NextDC shares have declined for seven straight weeks, and are on course to end lower for the eighth week.
document fetched 2026-10-21 02:56 · canonical https://cnbc.com/2026/10/21/australia-data-center-operator-nexdc-datacenter.html