# NEXTDC Pauses New Projects, Cuts FY27 Spending After Power Delay By John Kim Canonical URL: https://www.tokenpost.com/news/business/36788 Published: 2026-10-21T15:23:03.000Z Updated: 2026-10-21T15:23:03.000Z Section: Business > The Australian data center operator lowered its capital spending forecast to A$4.5 billion to A$5 billion and will prioritize contracted capacity. Australian data center operator NEXTDC Limited has paused all new development projects and land acquisitions, cutting its fiscal 2027 spending plan after a power delay disrupted expansion at its M3 Melbourne site. NEXTDC now expects capital spending of A$4.5 billion to A$5 billion, down from A$5.25 billion to A$5.75 billion. The new range includes about A$230 million of capitalized interest excluded from the earlier forecast. Removing that interest puts the revised range at A$4.27 billion to A$4.77 billion, a reduction of about A$980 million, or 17% to 19%, on a comparable basis. The new forecast also includes about A$500 million of customer fitout costs that NEXTDC expects to be reimbursed. The company is directing spending toward contracted capacity expected to be delivered within 12 to 18 months and projects nearing completion. The pause applies to new developments and land purchases; construction of data halls inside M3’s existing buildings continues. The spending reset follows [cuts to NEXTDC’s revenue and earnings forecasts](). Its fiscal 2027 net revenue outlook fell to A$475 million to A$500 million from A$615 million to A$640 million. Its underlying EBITDA forecast fell to A$245 million to A$265 million from A$385 million to A$410 million. EBITDA is earnings before interest, taxes, depreciation and amortization. The revised guidance excludes revenue and attributable EBITDA from affected M3 customer contracts, including capacity already being billed. Any contribution from those contracts will still be included in actual results. NEXTDC has not quantified that contribution or potential service-level credits, which could reduce underlying EBITDA below its revised guidance. Jemena Electricity Networks (Vic) Ltd suspended parts of the work needed to increase M3’s grid supply in September amid safety concerns, community opposition and pending local council consent. Jemena does not expect to restart before February 2027. Based on Jemena’s current indicative estimate, NEXTDC expects the next grid supply increase during fiscal 2028, with delivery and billing of the capacity dependent on it to follow shortly afterward. NEXTDC also expects a planning decision on the final stages of the M3 campus in 2027. Its board plans to announce the outcome of its capital spending review by the company’s Nov. 20 annual general meeting. ## Links in this article - [cuts to NEXTDC’s revenue and earnings forecasts](https://www.tokenpost.com/news/business/36643)