NextDC shares plunge as its Melbourne data center waits for more power
NEXTDC（next-dee-see）
An Australian company that runs data centers.
M3 Melbourne（em-three Melbourne）
NEXTDC’s large data center site in Melbourne.
underlying EBITDA
A measure used to compare a company’s operating profit.
What happened
NEXTDC, an Australian company that runs data centers, saw its shares fall about 40% in morning trading on October 21, 2026. Capital Brief reported that the stock was down 40% to A$5.51 at 10:08 a.m. AEDT. The fall came after NEXTDC warned that its M3 Melbourne facility cannot receive its next planned increase in grid power on schedule. Capital Brief report
Why the power delay matters
M3 Melbourne is a large NEXTDC data center campus. Customers pay for computing capacity there. That capacity needs enough electricity before NEXTDC can deliver and bill it fully.
Jemena, the electricity network company working on the connection, stopped part of its work in September. NEXTDC said the pause followed community and stakeholder opposition, safety concerns, and a lack of local council consent while talks continue. Jemena does not expect to restart the work before February 2027. The next increase in grid supply is now expected during FY28, the financial year ending in June 2028. NEXTDC announcement
The numbers behind the new forecast
NEXTDC cut its FY27 forecast. FY27 is the financial year ending in June 2027. The company removed the affected M3 contracts from its main forecast until their timing becomes clearer.
Net revenue guidance fell from A$615 million–A$640 million to A$475 million–A$500 million. Underlying EBITDA guidance fell from A$385 million–A$410 million to A$245 million–A$265 million. Underlying EBITDA is a measure of operating profit before several major costs. Capital spending guidance also fell from A$5.25 billion–A$5.75 billion to A$4.5 billion–A$5 billion.
The earlier August forecast included about A$140 million of revenue from those M3 contracts. It also included about A$140 million of underlying EBITDA. The company says it cannot yet estimate the timing and size of that contribution reliably.
What is confirmed
Construction inside the existing M3 buildings is continuing. The affected capacity remains under contract, subject to the customer’s rights. NEXTDC is pausing new projects and land purchases that lack customer contracts. It plans to focus spending on capacity customers have already ordered.
The company reported A$8.675 billion of liquidity at September 30. It also said it remains within its financial covenants. Those facts show that the announcement was a major forecast cut, not a claim that the company has already failed financially.
What is still unknown
The next power increase does not have a guaranteed date. Customer contracts may require service credits if capacity arrives late. Some contracts may also give customers rights to end them. NEXTDC is still assessing those issues.
The Victorian government’s planning decision for later M3 stages is also delayed. NEXTDC now expects that decision in 2027, after the November 28 state election. Actual FY27 results may therefore differ from the new forecast. NEXTDC itself warns that its forward-looking statements are not guarantees.
What to watch next
The immediate signs will come from Jemena’s community talks, council consent, and a restart of the power work. NEXTDC will review its capital program and report the result by its annual meeting on November 20. Investors will also watch whether the company can bring power forward, how customers respond, and whether the delay affects borrowing capacity.
The episode does not prove that every data center project faces the same problem. It does show the practical limit of a data center plan. A building and a customer contract are not enough. The power connection, approvals, and local agreement must arrive too.
Why NextDC shares fell: A data center is waiting for power
📰 Full story: NextDC shares plunge as its Melbourne data center waits for more power
A delayed power project changed NextDC’s plans and worried investors.
data center
A building that holds many computers.
guidance
A company’s forecast for future results.
grid
The network that carries electricity to buildings.
💡 The gist
- NEXTDC runs data centers in Australia.
- A Melbourne site is waiting for more grid power.
- Its shares fell about 40% after a forecast cut.
NEXTDC, an Australian company that runs data centers, saw its shares drop sharply. The fall happened on October 21, 2026. The stock fell about 40% in morning trading. Capital Brief report
The problem involves M3 Melbourne. M3 Melbourne is one of NEXTDC’s data center sites. It needs more electricity to serve its customers.
Jemena is the company working on the power connection. It stopped part of the work in September. Local people and other groups opposed the work. A local council decision is also still pending.
Jemena does not expect to restart the work before February 2027. NEXTDC now expects more grid power during FY28. FY28 is the financial year ending in June 2028.
This delay affects how NEXTDC earns money. Customers can sign contracts for data center capacity. But NEXTDC must deliver the capacity before it can fully bill them. Less power means slower delivery. Slower delivery means later payments.
NEXTDC cut its FY27 guidance. Guidance means a company’s forecast for future results. FY27 ends in June 2027. Net revenue guidance fell from A$615 million–A$640 million to A$475 million–A$500 million. Its operating profit measure fell from A$385 million–A$410 million to A$245 million–A$265 million. NEXTDC announcement
The company did not say that every M3 contract disappeared. It said the timing is too uncertain. It removed those contracts from its main forecast for now.
NEXTDC also paused projects without signed customer contracts. It will focus money on work customers already ordered. Construction inside existing M3 buildings is continuing.
The next questions are simple. When will the power work restart? When will the council approve it? When will the government decide on later M3 stages? The answers will show whether the delay is short or long.
This story matters because data centers need more than buildings. They need electricity, permits, and local support. A customer contract cannot solve a missing power connection by itself.
A computer building is waiting for electricity
📰 Full story: NextDC shares plunge as its Melbourne data center waits for more power
A big computer building must wait for more power.
NEXTDC（next-dee-see）
A company that runs computer buildings.
data center
A building full of computers.
share
A tiny piece of a company.
What happened?
NEXTDC is an Australian company.
It runs data centers.
A data center is a building full of computers.
Its M3 Melbourne building needs more electricity.
Jemena works on the power lines there.
Some local people and other groups objected.
The council is still talking about the work.
So part of the work stopped.
More power may come during FY28.
That means a later time.
NEXTDC cannot use all the planned power yet.
So some customers must wait.
The company may also get paid later.
NEXTDC lowered its sales and profit forecasts.
People who own shares became worried.
A share is a tiny piece of a company.
The share price fell about 40%.
The company has not disappeared.
People are still working on the power problem.
They must finish the work and keep talking.