NEXTDC Limited expects the next increase in grid supply for its Melbourne M3 data center in fiscal 2028, delaying contracted capacity and forcing a reset to its fiscal 2027 outlook.
The revised net revenue range is A$475 million to A$500 million, down from A$615 million to A$640 million. At the range midpoints, that is a decline of A$140 million, or about 22%. Underlying earnings before interest, taxes, depreciation and amortization guidance fell from A$385 million to A$410 million to A$245 million to A$265 million, a roughly 36% midpoint drop. EconoTimes detailed the outlook cut and its market reaction after the Oct. 21 filing.
NEXTDC said Jemena Electricity Networks (Vic) Ltd. paused some 66-kilovolt connection work in September and does not expect it to resume before February 2027. The company said Jemena cited safety concerns and restricted access amid community and stakeholder opposition. Local council consent is also pending while consultations continue.
The delay affects capacity already contracted to customers. Billing had begun for a portion of the delayed capacity, but NEXTDC left the affected M3 contracts out of its fiscal 2027 forecast because it could not reliably estimate their contribution. Late or incomplete power delivery could trigger customer credits, and some agreements allow termination in certain circumstances. Construction of new data halls is continuing.
NEXTDC also reduced fiscal 2027 capital spending guidance to A$4.5 billion to A$5 billion, from A$5.25 billion to A$5.75 billion, and said spending would focus on capacity already contracted. The company plans to update investors at its Nov. 20 annual meeting.
