NextDC shares slump 41.7% after guidance cut over Melbourne grid delay
NextDC stock fell 41.7% after Jemena suspended grid connection works for its M3 data centre, prompting sharp cuts to FY27 guidance.
- 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 marketindex.com.au, shares of data centre operator NextDC plunged 41.7% on Wednesday. The trigger was Jemena's suspension of network connection work needed to increase electricity supply to NextDC's M3 Melbourne data centre.
As a result, NextDC cut its FY27 outlook: net revenue is now guided at $475m-$500m versus $615m-$640m before, and underlying EBITDA at $245m-$265m versus $385m-$410m. Jemena does not expect to restart works before February 2027, and a decision on M3 Stages 6 and 7 has been pushed past the 28 November Victorian election. Liquidity stood at $8.68bn at 30 September, though the company warned M3 delays could affect its ability to draw $6.7bn of undrawn senior debt.
why it matters
The report notes that NextDC's heavy debt load and high finance costs were already weighing on the stock before the news. For markets it signals risk around AI data centre infrastructure and how sensitive such firms are to grid connection timing.
market impact
Australian market: the NextDC guidance cut weighs on data centre and AI infrastructure names
tags
instruments
sources
- Weekend Wrap: Check in on your small-cap friends — marketindex.com.au, 24 October 2026 at 21:30 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 ↗