Australian data center operator NextDC's shares plunge 40% after it slashes earnings forecast
The company cited power supply delays at its Melbourne facility amid local community and stakeholder opposition for lowering earnings forecast.
TL;DR
- NextDC shares dropped 39.5% due to slashed fiscal 2027 revenue and earnings guidance.
- Power supply delays at the M3 Melbourne data center are attributed to community opposition and safety concerns halting infrastructure upgrades.
- Electricity distributor Jemena expects to resume work no earlier than February 2027.
- Citi notes that earnings impact could extend beyond 2027 due to expansion approval and transformer upgrade delays.
- The Australian government is working on national standards for data center investment amidst growing local community and environmental concerns.
- NextDC shares have declined for seven consecutive weeks.