Nextdc opened sharply lower in Sydney at 10 a.m. Wednesday, falling as much as 44%. The company also lowered its EBITDA target to A$245 million to A$265 million for the fiscal year through June 2027, compared with a prior range of A$385 million to A$410 million. The low end equals $172 million.
The earnings downgrade comes after a move by Jemena Electricity Networks to halt electricity connection work for Nextdc's M3 data center in Melbourne, citing community and stakeholder opposition. Nextdc said it is reassessing its capital spending plan and has paused every new development effort and any land buying.
Contract protections are in play. "Nextdc is considering whether relief is available to it under the force majeure and other relevant provisions of those contracts," the company said.
The company added it has paused expansion moves for now. "The board will also evaluate capital recycling opportunities, including the potential sale of selected development sites that are not required in the near term," Nextdc said.
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Community pushback against data centers is widespread.
Australia still has a major buildout on the table. By 2030, Commonwealth Bank of Australia projects data center spending may total A$150 billion. The catch is power: these facilities need round-the-clock electricity, while aging coal plants are being retired and variable wind and solar are taking a bigger role. If generation, storage, and grid upgrades do not keep pace, expansion timelines can slip.
The bottom line: permitting risk and grid capacity are now core inputs to earnings visibility for data center operators. Keep an eye on guidance, capex plans, and any asset sales that reshape cash needs and growth paths.
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