NextDC loses 40% as power constraints force forecast cuts
The data centre operator has put new developments and land purchases on hold while electricity and planning delays affect its Melbourne expansion.
Electricity supply delays at NextDC's West Footscray data centre have prompted the company to cut its financial forecasts, sending its shares down 40 per cent on 21 October 2026.
In its stock exchange update, NextDC reduced expected net revenue for the current financial year to A$475 million–A$500 million, compared with A$615 million–A$640 million previously. It lowered its operating profitability estimate to A$245 million–A$265 million, against the earlier A$385 million–A$410 million range.
NextDC said electricity supplier Jemena had stopped portions of the network upgrade needed by its M3 facility. Additional grid power is now not anticipated before 2028. Chief executive Craig Scroggie said the company had excluded affected contracts from its FY27 guidance because their contribution could not yet be reliably estimated.
The disruption follows opposition to Jemena's installation of 15-metre-high poles in Yarraville. Work stopped in September after residents resisted the project. Councils and residents raised concerns about inadequate consultation.
Simon Cooper, NextDC's group chief development officer, said options included relocating poles or putting cables underground, although underground installation could not provide an immediate solution.
NextDC also said approval for a proposed expansion that would double the centre's size across 10 hectares had been delayed until after November's state election. The company has halted new development projects and land purchases for the foreseeable future, and will consider selling selected development sites.
Residents group Citizens of Tottenham welcomed the delays. Member Sean Brown again sought remediation and financial compensation for affected residents, with voluntary buybacks among the measures requested.
