NextDC, a data center operator in Australia, has faced a dramatic decline in its stock price following a substantial cut to its annual earnings forecast. The company revised its fiscal 2027 revenue guidance down to between A$475 million and A$500 million, a decrease from the previous estimate of A$615 million to A$640 million.
Additionally, it lowered its EBITDA forecast to A$245 million to A$265 million, down from A$385 million to A$410 million. The primary reason for this adjustment is the delay in power supply at its M3 Melbourne data center, which has been stalled due to community opposition and safety concerns raised by the electricity distributor Jemena.
Jemena does not anticipate resuming work until February 2027, as it awaits further community consultation and local council consent. Analysts at Citi have indicated that these power delays could have a prolonged impact on NextDC's earnings, potentially extending beyond fiscal 2027, due to ongoing issues with approvals for the M3 expansion and transformer upgrades.
This situation reflects a broader trend of increasing resistance to data center developments globally, driven by environmental and community concerns. As a result, NextDC's shares have now fallen for seven consecutive weeks, with expectations of an eighth week of losses