Australian data center operator NextDC’s logo is seen at its Artarmon facility in Sydney on September 15, 2026 (Photo by Saeed KHAN/AFP, Getty Images)
Saeed Khan | AFP | Getty Images
australian stocks NextDC It plunged 39.5 per cent on Wednesday after the data center operator cut its full-year revenue forecast, citing power supply delays at its Melbourne facility following opposition from local communities and stakeholders.
The company has lowered its revenue forecast for fiscal 2027 from the previous forecast of A$615 million to A$640 million to A$475 million to A$500 million, while reducing interest payments and The company has lowered its earnings before tax, depreciation and amortization (EBITDA) forecast from A$385 million to A$410 million to A$245 million to A$265 million.
NEXTDC stock on October 22nd.
NextDC said the power supply delays were due to infrastructure upgrades at its M3 Melbourne data center being halted following community opposition, with power distribution company Jemena not planning to resume work until February 2027.
Mr Jemena cited safety concerns and limited access to the work site due to local opposition, as well as a lack of consent from the local council pending further consultation with local residents.
Citi said in a note that NextDC’s power delays could impact revenue in fiscal 2027 and beyond, citing delays in approval of the M3 expansion and a longer-than-expected schedule for transformer upgrades.
As Australia grapples with growing concerns about the impact of data center development on local communities, Finance Minister Jim Chalmers said the government was working to establish national standards for investment.
Chalmers told CNBC’s “Squawk Box Asia” on Wednesday that the government welcomes investment in data centers and AI infrastructure as long as it is in the national interest, adding that the government is finalizing national investment standards to address concerns around AI deployment.
Australia is not alone in opposing data center projects; there is a growing backlash against data center development around the world amid concerns about the impact on local communities and the environment.
NextDC stock has declined for seven consecutive weeks and is expected to end its eighth week lower.
