Australian data center operator NextDC's shares plunge 40%
Australian data center operator NextDC saw its shares drop nearly 40% after slashing its earnings forecast due to power supply delays. The delays are linked to community opposition and infrastructure hurdles at its Melbourne facility, which are expected to persist until 2027.
Why it matters
This highlights the growing tension between the rapid expansion of AI-driven data infrastructure and local community concerns regarding energy and environmental impact.
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.
Shares of NEXTDC on 22 Oct. 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.
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