NextDC Shares Drop Sharply After Cutting Earnings Forecast Due to Power Delays
Australian data center operator NextDC experienced a sharp decline of nearly 40% in its share price after it significantly reduced its fiscal year 2027 revenue and earnings forecasts. The company attributed the cutbacks to delays at its Melbourne facility caused by infrastructure upgrades being suspended due to community opposition. NextDC revised its FY2027 revenue guidance down from A$615 million to A$640 million to between A$475 million and A$500 million, while also lowering EBITDA forecasts. Citi analysts noted that the earnings impact could extend beyond 2027 due to ongoing delays in approvals for expansion projects and transformer upgrades. The situation highlights growing global resistance against data center expansions over environmental and community concerns.
Topics: data centers power supply delays revenue guidance stock price drop