NextDC Cuts 2027 Revenue Forecast to A$475–500 Million
Key Facts
NextDC cut its revenue forecast for fiscal 2027 to a range of A$475 million to A$500 million, from a previous estimate of A$615 million to A$640 million, after work to increase electricity supply to its M3 centre in Melbourne was disrupted. The company also lowered its forecast for underlying operating earnings to A$245–265 million, compared with a previous estimate of A$385–410 million. Reuters quoted the company as saying that Jemena had suspended parts of the power-grid work required to increase supply to the centre. It said the suspension followed opposition from the local community and stakeholders. The delay led to a substantial revision of fiscal 2027 financial forecasts, while the available facts do not confirm that the company suspended its uncontracted data-centre projects on November 9.
The company links the delayed expansion at M3 to electricity infrastructure work, as increased power supply was necessary for the project. According to Reuters, Jemena stopped parts of the grid work that were intended to enable that increase. Jemena attributed the work suspension to objections from the community and stakeholders, placing local opposition at the centre of the explanation for the delay. This means the cited obstacle concerns delivering power to the centre, rather than operational challenges inside the facility, as stated in an unsupported account. The available facts give no date for the resumption of grid work or an updated timeline for delivering capacity at M3.
The impact of the power delay extended to the company’s financial estimates for fiscal 2027. The revenue forecast range fell from A$615–640 million to A$475–500 million, meaning both ends of the new range are below their previous counterparts. The underlying operating earnings range was also cut from A$385–410 million to A$245–265 million. The revisions to both metrics reflect the company’s review of its annual estimates following the project delay, according to figures reported by Reuters. The available facts provided no further explanation of the components behind the revenue or earnings reductions, or an independent estimate of M3’s contribution to either.
The market reaction to the forecast cuts was sharp in the October 21 session, when NextDC shares closed down 41.7%. Reuters said the decline wiped about A$3 billion from the company’s market value. The agency described the session as the stock’s worst since its 2010 listing. These figures relate to the October session and do not establish the stock’s direction on November 9. In more recent context, a story published by EL7 on November 5 noted that the stock had risen 43% after takeover offers from Goodman and Digital Realty; that was a separate earlier event from the share move in the session covered by the news.
The M3 dispute highlights the effect of community opposition on the timing of data-centre expansions, according to an assessment by an RBC Capital Markets analyst cited by Reuters. The analyst said delays to power supply and development applications at M3, although outside the company’s control, underscore that community concerns pose a real risk to the timing of delivering contracted capacity. An Australian Broadcasting Corporation report said the West Footscray centre is 15 metres from homes. The report said residents’ protests forced Jemena in September to halt the installation of 15-metre-high electricity poles in Yarraville. These facts place local objections and electricity-connection work in the immediate context of the delay affecting the M3 expansion.