Australian data center operator NextDC's shares plunge 40% after it slashes earnings forecast
- ID
- 37698
- Status
- summarized
- Published
- 21 Oct 2026, 10:55 AM
- Fetched
- 21 Oct 2026, 11:08 AM
- Provider
- CNBC Technology
- Category
- technology
- Original URL
- https://www.cnbc.com/2026/10/21/australia-data-center-operator-nexdc-datacenter.html
- Source URL
- https://www.cnbc.com/id/19854910/device/rss/rss.html
Summary
- Score
- 5.0
- Created
- 21 Oct 2026, 11:08 AM
- Tags
- Audience
- developersai_ml_learnerssaas_startup_founders
What happened
NextDC shares fell 39.5% after the Australian data center operator cut fiscal 2027 guidance, citing power supply delays at its M3 Melbourne facility. Revenue guidance dropped to A$475–500 million from A$615–640 million, and underlying EBITDA guidance fell to A$245–265 million from A$385–410 million. Distributor Jemena does not expect infrastructure upgrade work to resume before February 2027, citing safety concerns, restricted site access, and community opposition; Citi noted the earnings impact could extend beyond 2027 due to expansion approvals and transformer upgrades.
Why it matters
There is no direct Malaysian detail here, but for builders planning APAC hosting or AI workloads, it is a concrete reminder that data center capacity timelines can slip because of power upgrades and local approvals. If you depend on Australian or APAC cloud capacity, ask providers what power, transformer, and approval dependencies sit behind their announced regions rather than assuming capacity arrives on schedule.
Discussion angle
How should APAC SaaS and AI teams factor data center power and approval delays into region selection, capacity planning, and cloud vendor questions?