NextDC shares plunge 42% as local opposition stalls data centre power upgrades
Australian data centre operator NextDC cut its EBITDA forecast and paused unfunded projects after power work at its Melbourne site was suspended.
- published on Newsmetry
- original source published
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →
what happened
According to Reuters, shares in Australian data centre builder and operator NextDC closed down 42% on October 21. The drop followed a cut of more than a third to the company's underlying EBITDA forecast for the financial year ending in June. It now expects EBITDA of A$245 million to A$265 million, or $172 million to $186 million.
CEO Craig Scroggie said all projects not backed by customer contracts are on hold, a “detailed review” of capital spending has begun, and the company is open to selling development sites that are “not required in the near term”. Utility Jemena suspended part of the work needed to boost power supply to the M3 data centre in Melbourne after local opposition to 22-metre concrete poles. The company had about A$8.7 billion of liquidity at the end of September.
Reuters also notes that on October 20 Amazon dropped plans for four data centres in Virginia after local opposition.
why it matters
Reuters links the sell-off to wider investor doubts about AI infrastructure: heavy debt-funded spending, slow-moving utilities, chip shortages and hyperscaler clients with strong exit clauses. Delays in securing grid connections can push back capacity timelines and weigh on valuations of companies in this segment.
market impact
AI infrastructure: grid connection delays and debt burdens weigh on data centre operator stocks
tags
instruments
sources
- Data centres fail as AI pick-and-shovel trade — Reuters, 23 October 2026 at 02:17 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.
get stories in real time ↗