Australian data center operator NextDC experienced a 40% share price plunge on October 21, 2026, wiping around $3 billion off its market valuation after slashing its fiscal 2027 revenue guidance to A$475M–A$500M. The cuts follow grid supply delays at its M3 facility in Melbourne after power provider Jemena halted high-voltage line construction until 2027 due to intense residential protests and safety concerns.
Share price plunge and valuation loss
- ▪NextDC shares fell up to 41.7% on October 21, 2026, wiping approximately $2 billion to $3 billion off the company's market valuation after resuming trading from a two-day halt.
- ▪NextDC shares reached a low of A$5.07 on October 21, 2026, dropping from a Monday closing price of A$9.57 and down from a peak of A$17.22 recorded a year prior.
Financial forecast and expenditure cuts
- ▪NextDC cut its fiscal 2027 underlying EBITDA guidance to between A$245 million and A$265 million, down from its prior forecast of A$385 million to A$410 million.
- ▪NextDC reduced its upcoming capital expenditure plan to between A$4.5 billion and A$5 billion, down from a planned $5.75 billion, while placing speculative expansion projects and land acquisitions on hold.
- ▪NextDC lowered its fiscal 2027 net revenue guidance to between A$475 million and A$500 million, down from its previous forecast of A$615 million to A$640 million.
M3 expansion project
- ▪NextDC's planned expansion of the M3 West Footscray facility aims to increase its processing capacity from 60 megawatts to 225 megawatts across a 10-hectare site.
- ▪NextDC stated that construction of new data halls at its M3 facility will continue despite grid power supply delays from electricity distributor Jemena.
Local resident protests and safety concerns
- ▪Residents in Yarraville and West Footscray blockaded streets and filled excavation pits to protest the installation of 15-to-22-metre-tall, 66,000-volt power poles near residential homes.
- ▪Local residents group Citizens of Tottenham expressed concerns over diesel pollution, noise, and safety surrounding NextDC's M3 data centre located 15 metres from residential homes.
Power supply upgrade delays and alternatives
- ▪NextDC and Jemena are evaluating alternative power delivery options for the M3 facility, including undergrounding cables or routing power lines through industrial zones.
- ▪Electricity distributor Jemena suspended powerline upgrade construction for NextDC's M3 data centre until at least February 2027 due to safety concerns and lack of local council consent.
- ▪Grid supply upgrades needed to increase power capacity for NextDC's M3 data centre in West Footscray, Melbourne, have been deferred until mid-2027.
Government planning approvals
- ▪Victorian government planning decisions regarding permits for stages six and seven of NextDC's M3 expansion have been delayed until after the November 28, 2026 state election.
- ▪NextDC chief executive Craig Scroggie stated that the earliest expected planning approval for the M3 facility expansion would be February 2027.
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