Australian data center operator Nextdc shares plunge as Melbourne project delayed amid community opposition

On October 21, Australian data center operator Nextdc saw its shares plummet after the company announced that a major project in Melbourne was delayed due to community opposition. Nextdc is considering force majeure options and has lowered its profit expectations. In a statement, Nextdc said it is reducing its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) forecast for the fiscal year ending June 2027 to between A$245 million (approximately US$172 million) and A$265 million, down from a previous expectation of A$385 million to A$410 million. According to the statement, this reduction in profit expectations is due to Jemena Electricity Networks suspending power connection work because of local community and stakeholder opposition to Nextdc's M3 data center project in Melbourne. The company is also evaluating its capital expenditure plan and has paused all new development projects and land acquisitions.