Gotrade News - NextDC (ASX: NXT) shares fell 41.7% on Wednesday, Fortune reported, after the Australian data center operator cut FY27 underlying EBITDA guidance to A$245 million to A$265 million in an ASX release as community opposition stalled grid works at its M3 Melbourne campus, capping a rough few weeks for AI infrastructure.
NextDC had previously guided to underlying EBITDA of A$385 million to A$410 million. The stock slid as much as 44% in Sydney trading, erasing about A$3.1 billion from NextDC's market value, according to Mingtiandi.
BX, CRWV and NVDA Market Data
| Ticker | Close | Daily change | 52-week range |
|---|
| BX | $110.34 | +3.03% | $101.73 to $165.14 |
| CRWV | $62.13 | +1.65% | $57.24 to $141.79 |
| NVDA | $216.47 | -0.29% | $164.27 to $243.37 |
Regular-session close on October 20, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
NextDC Removes About A$140 Million of M3 Contracts From FY27 Guidance
According to NextDC's ASX release, FY27 net revenue is now expected at A$475 million to A$500 million, down from A$615 million to A$640 million. The revised ranges exclude the revenue and attributable EBITDA of the affected customer contracts at M3 Melbourne, including capacity already billing, and the company said its August guidance included approximately A$140 million of each of net revenue and underlying EBITDA from those contracts.
NextDC also said service level credits payable on those contracts could reduce underlying EBITDA below the revised guidance. The release sets out the new FY27 ranges against the guidance it gave on August 27, 2026:
| FY27 guidance (NextDC) | Previous (Aug 27, 2026) | Revised (Oct 21, 2026) |
|---|
| Net revenue | A$615 million to A$640 million | A$475 million to A$500 million |
| Underlying EBITDA | A$385 million to A$410 million | A$245 million to A$265 million |
| Capital expenditure | A$5,250 million to A$5,750 million | A$4,500 million to A$5,000 million |
NextDC described the capex change as a reduction of A$750 million, or 13% to 14%. The revised capex range includes approximately A$230 million of capitalized interest, which the previous guidance did not include.
Why Jemena Halted Grid Works at M3 Melbourne
Jemena, the electricity distributor that supplies power to M3, suspended parts of its 66kV line augmentation works in September 2026 and has told NextDC it does not expect to recommence them before February 2027, per the release. Jemena attributed the suspension to safety concerns and lack of access to work sites arising from community and stakeholder opposition, and to the local council, as the relevant road authority, not giving its consent while further consultation takes place.
NextDC now expects the next increase in grid supply to M3 in FY28, with delivery and billing of the contracted capacity to follow shortly after. The Victorian Government's planning decision on M3 Stages 6 and 7 is also not expected until 2027, because caretaker conventions begin on November 3, 2026, ahead of the November 28 state election, the company said.
"We have taken the affected M3 contracts out of FY27 guidance until we can reliably estimate their contribution," NextDC Chief Executive Craig Scroggie said in the release. "The capacity remains under contract, subject to the customer's rights, and construction of the data halls is continuing."
Local resistance is the backdrop. As reported by Fortune, Australian data centers, much like their counterparts in the US, are sparking protests from residents worried about the impact on power and water supplies and about worse noise pollution.
NextDC Pauses New Projects With A$8.7 Billion of Liquidity
To prioritize near-term contracted customer capacity, NextDC has put all new development projects and land acquisitions on hold for the foreseeable future, and its board will evaluate the potential sale of selected development sites that are not required in the near term. The company said it will announce the outcome of a detailed capex review by its Annual General Meeting on November 20, 2026.
NextDC reported liquidity of A$8,675 million at September 30, 2026, including A$1,275 million of cash, and said it remains in compliance with its financial covenants. It also warned that a material change in expected customer billing profiles could affect its ability to draw down senior debt, and that the grid supply delays at M3 could be such a change.
The affected contracts provide for service level credits where capacity is delivered late or is not fully powered and, in some circumstances, give the customer rights to terminate, according to NextDC, which is considering whether relief is available under force majeure and other relevant provisions.
Blackstone (BX): AirTrunk Postpones Singapore REIT Listing
NextDC's fall caps a rough few weeks for data center and AI infrastructure companies, Fortune reported. AirTrunk, a data center operator owned by Blackstone (BX), decided on October 13 to postpone a Singapore listing for its REIT, according to media reports cited by Fortune.
CoreWeave (CRWV): Bonds Drop Below 80 Cents on the Dollar
Per Fortune, bonds of US-based neocloud CoreWeave (CRWV) dropped below 80 cents on the dollar last week, a level that typically signals a company under financial strain.
Nvidia (NVDA): Firmus Stake in Focus After a Withdrawn IPO
Fellow Australian data center operator Firmus canceled its Australian IPO on October 9, Fortune reported. Mingtiandi said the A$7.1 billion float was withdrawn after investors balked at a A$43.7 billion valuation, and that Firmus is seeking a further A$500 million investment from Nvidia (NVDA), which holds 7.2% of Firmus according to media reports. Mingtiandi pointed to the pullout as a sign that capital markets are also growing warier.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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