NextDC slashes earnings outlook, puts new data center projects on hold
Australian data center operator NextDC (NXDCF) shares plunged as much as 44% on Wednesday after it sharply cut its FY27 revenue and earnings forecasts due to delays in electricity network upgrades at its M3 Melbourne data center.
NextDC now expects FY27 net revenue of A$475M to A$500M, down from its previous forecast of A$615M to A$640M. Underlying EBITDA is projected at A$245M to A$265M, compared with the earlier guidance of A$385M to A$410M.
The setback follows delays to electricity network upgrades, pushing the next increase in power supply to the facility into FY28 and deferring revenue from contracted customer capacity. NextDC (NXDCF) has also paused new development projects and land acquisitions.
The company lowered its FY27 capital expenditure forecast to A$4.5B to A$5B from A$5.25B to A$5.75B.
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