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NextDC Melbourne data centre power delays

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-26 00:14 UTC → 2026-10-26 02:04 UTC · added removed

NextDC shares fell approximately 40 per cent, reaching an eight-year low, following announcements of significant delays to the M3 data centre project in West Footscray, Melbourne. The delays are attributed to the suspension of electricity network works by Jemena Electricity Networks (Vic) Ltd, which halted the installation of 66kV power poles due to stakeholder opposition and a lack of local council consent. Jemena does not expect to resume work before February 2027. In response to these delays, NextDC reduced its fiscal 2027 guidance for net revenue and underlying EBITDA. The company also revised its FY27 capital expenditure guidance and is exploring the sale of certain development sites to manage cash flow. The share price crash has wiped $3 billion from the company’s market valuation. The sell-off has led to increased scrutiny of the company’s financial health. Analysts have lowered price forecasts, noting that a projected 35 per cent reduction in earnings could pressure cash flows and impact the company’s ability to meet banking covenants, such as a 60 per cent gearing ratio limit. Specifically, analysts at Jefferies warned that persistent power issues could lead to a potential breach of the company’s interest coverage ratio by 2028. Following the downturn, NextDC announced leadership and governance changes. Chairman Douglas Flynn will retire once a successor is appointed, and the board has withdrawn a proposal to increase maximum annual remuneration for non-executive directors. Current directors have agreed to a voluntary an immediate 10 per cent voluntary reduction in fees. fees, and the company expects to appoint two new non-executive directors in the first quarter of 2027. Additionally, Chief Executive Craig Scroggie will forfeit millions in bonuses forgo his fiscal 2027 short-term and long-term incentive opportunities after the company slashed profit forecasts and construction spending.

Versions

  1. 2026-10-26 02:04 UTC NextDC Melbourne data centre power delays
  2. 2026-10-26 00:14 UTC NextDC Melbourne data centre power delays
  3. 2026-10-22 07:12 UTC NextDC Melbourne data centre power delays

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