NextDC Forecasts Revenue of $333 Million to $350 Million

Shares in NextDC fell 41.7% Wednesday after the Australian data center operator cut its annual outlook, as community opposition delayed a grid upgrade for its M3 site in Melbourne.

NextDC now forecasts revenue of $333 million to $350 million and EBITDA of $172 million to $186 million. EBITDA is earnings before interest, taxes, depreciation and amortization. The revenue outlook is down from the company’s previous forecast, following the Melbourne power delay covered in an earlier report.

The company also reduced planned capital spending by $527 million and paused land purchases and new data center projects, actions detailed in its earlier update on development and spending.

Jemena, the electricity provider serving M3, suspended part of its network work last month. It does not expect to resume the work before February 2027. NextDC CEO Craig Scroggie said Jemena attributed the suspension to “community and stakeholder opposition” and “the absence of local council consent pending further consultation.”

Local objections to data center projects have also arisen in the United States, with concerns including electricity and water supplies and noise.