# NextDC Cuts Fiscal 2027 Outlook After Melbourne Power Delay

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/40508
Published: 2026-10-25T11:59:54.000Z
Updated: 2026-10-25T11:59:54.000Z
Section: Business

> The operator removed about $98 million in forecast net revenue. CrowdStrike and Palo Alto Networks shares each rose more than 10% this week.

NextDC shares fell about 42% Wednesday, Oct. 21, after the Australian data center operator cut its fiscal 2027 outlook as a power delay in Melbourne pushed added grid capacity to fiscal 2028.

NextDC removed about $98 million in expected net revenue from its forecast after grid-upgrade work was suspended at its M3 site. At the midpoint of its revised ranges, expected net revenue fell about 22%, while underlying earnings before interest, taxes, depreciation and amortization declined about 36%. Some affected contracted capacity had already begun billing.

Customer contracts may allow service credits or, in some cases, cancellation when supply or delivery slips. That means the delay could reduce revenue as well as push it into a later period. NextDC is reviewing contract terms and possible force majeure relief.

The delay is a specific example of power constraints affecting planned data center openings. Most of Amazon Web Services’ large-scale capacity for 2027 had been booked, with a substantial share of its 2028 capacity committed. Those commitments do not ensure that each site will be powered and ready on schedule.

Microsoft withdrew from a planned Nscale data center in Loughton, UK, after a grid-connection delay threatened the project schedule. The site was planned for early 2027, with about 50 megawatts of capacity and 23,040 NVIDIA GB300 GPUs. In Virginia, Amazon and Loudoun County reached a preliminary arrangement for Amazon to withdraw its data center application for the former George Washington University campus and pursue housing and mixed-use development. The terms still need to be finalized.

Cybersecurity has drawn attention as automated attacks put more websites in scope. NorForge identified a campaign targeting more than 1,200 websites across hundreds of companies. CrowdStrike and Palo Alto Networks shares each rose more than 10% this week, though the gains cannot be attributed solely to AI attacks.

Any added security spending may also go to cloud platforms or companies’ internal teams. Future company results will show whether heightened concern turns into continuing orders and renewals. NextDC’s next increase in grid supply is now expected in fiscal 2028.