NextDC said Jemena Electricity Networks has suspended parts of the 66kV network works that feed its M3 Melbourne data centre, citing community and stakeholder opposition and the absence of local council consent, and does not expect to restart before February 2027, so the next increase in grid supply at M3 is now expected in fiscal 2028 and the delivery and billing of contracted capacity moves with it. The company cut fiscal 2027 net revenue guidance to A$475 million to A$500 million from A$615 million to A$640 million, and underlying EBITDA guidance to A$245 million to A$265 million from A$385 million to A$410 million, excluding the affected M3 contracts, which had contributed about A$140 million of each in the August guidance; it also lowered capital expenditure guidance to A$4.5 billion to A$5.0 billion, put all new development projects and land acquisitions on hold, and said it would evaluate selling selected development sites, while reporting liquidity of A$8,675 million at September 30 and compliance with its covenants. Reuters reported the shares fell 44 percent in early Sydney trade on Wednesday, wiping about A$3.1 billion from the company’s market value, and that the stock was the biggest loser on the ASX 200.
NextDC shares fall 44 percent on Melbourne power delay
Australian data centre operator NextDC cut its fiscal 2027 revenue and earnings guidance by about a fifth and a third respectively after electricity network delays at its M3 Melbourne campus deferred contracted capacity into fiscal 2028, and its shares fell 44 percent in Sydney trade on Wednesday.
Why it matters: The cut is a power delivery failure, not a demand failure: contracted AI capacity could not be billed because grid works were suspended, a live test of the time-to-power risk now priced into data centre developers.
Data as of NEXTDC ASX release dated October 21, 2026, read in full via its EQS/webdisclosure republication for noteholders (the release states it is also posted on the company's investor centre); share price reaction from Reuters, October 21, 2026, read via syndication. Guidance is for the financial year ending June 30, 2027 and excludes the affected M3 contracts. Developing item.
Sources
- M3 Melbourne Power Delay and Revised FY27 Guidance - NEXTDC Limited, ASX release - 2026-10-21
- Australian AI data centre operator NextDC shares shed 44% on revenue delay - Reuters - 2026-10-21