Australian AI data centre operator NextDC shares shed 44% on revenue delay

Business Recorder reported that shares of Australian data centre operator NextDC fell 44% on Wednesday after the company sharply reduced its revenue outlook and froze future projects. Roughly A$3.1 billion in market value disappeared during early trading, leaving the stock at its lowest level since January 18 and making it the largest decliner on the ASX200. The sell-off followed weaker investor appetite for AI-linked spending.

NextDC attributed the revenue reset to postponed power network work at its M3 site in Melbourne, which pushes about A$140 million ($98 million) of contracted client income out of this financial year. It has put all new development projects and land purchases on hold for the foreseeable future, and will weigh asset recycling options such as possible site sales.

For 2027, NextDC now sees net revenue at A$475 million to A$500 million, compared with its earlier A$615 million to A$640 million, and underlying EBITDA at A$245 million to A$265 million, versus A$385 million to A$410 million before. Both figures exclude the affected M3 contracts. Capital spending expectations for 2027 now range from A$4.5 billion to A$5 billion, against a previous A$5.25 billion to A$5.75 billion, and a detailed spending review has begun. Jemena Electricity Networks has suspended parts of the grid works because of community opposition and does not expect to resume them before February 2027, which pushes the next M3 capacity increase to 2028.