NextDC Shares Plunge 45% After Melbourne Data Center Power Delays

Shares in Australian data center operator NextDC plunged by as much as 45% to $5.10 on Wednesday, October 21, 2026, after a trading halt was lifted[1][6][7]. This dramatic decline followed the company's announcement of substantial delays in the power supply infrastructure for its M3 Melbourne data center, located in West Footscray[1][7].

This event highlights a growing global tension: the rapid expansion of digital infrastructure, such as data centers, often collides with local community concerns over environmental and visual impact[3][4][5]. For NextDC, these local issues have directly translated into a significant financial setback and a revised outlook for its future operations[7].

What the records show

NextDC's company secretary, Michael Helmer, signed a letter to the ASX detailing the power supply delays and their financial implications[7][8]. The core issue stems from electricity network provider Jemena, which suspended critical network works intended to increase power supply to the M3 facility[7]. Jemena cited "strong community opposition and difficulties in securing the necessary approvals" as reasons for the suspension[7]. The M3 facility, designed to eventually cover 10 hectares, requires 66,000-volt power supplied via 15-meter-high concrete poles through residential streets in West Footscray and Yarraville[8]. Many of these higher voltage poles were already installed before Jemena suspended its work[8].

What changed and for whom

As a direct consequence of these delays, NextDC now anticipates the next increase in power supply will occur during fiscal year 2028, delaying its ability to deliver and bill customers for contracted capacity[7]. This forced a significant downgrade to its financial outlook for FY27[7]. The company revised its FY27 Underlying EBITDA guidance from an earlier forecast of $385 million to $410 million down to a new range of $245 million to $265 million[7]. Similarly, net revenue guidance for FY27 was cut from $615 million to $640 million to between $475 million and $500 million[7]. The impact extends to affected customer contracts, which may include provisions for compensation or termination if capacity cannot be delivered as scheduled[7]. A separate planning decision for further expansion at the M3 data center has also been postponed until 2027[7]. The situation also presents a political challenge for the Victorian "Carroll government," particularly with a November election approaching, as it attempts to balance investment attraction with increasing community resistance[8].

What the subject has said publicly

NextDC publicly announced the power supply delays and the substantial reductions to its FY27 financial guidance via its company secretary, Michael Helmer, in a letter to the ASX[7][8]. Jemena, the electricity network provider, stated that it suspended network works due to community opposition and difficulties obtaining necessary approvals[7].

What we could not confirm

We could not confirm the specific details regarding the provisions for compensation or termination within the affected customer contracts[7]. The full implications of the power delay had not yet been considered by NextDC's board at the time of the announcement[8].