Australian AI data centre operator NextDC shares shed 44% on revenue delay
NextDC shares fell 44% and wiped about A$3.1 billion from its market value in early trade.
Sydney - Australian data centre operator NextDC saw its shares drop nearly 44% on October 21 after slashing revenue forecasts and postponing future projects. The company revealed that a Melbourne data centre would miss out on around A$140 million worth of contracted customer revenue due to delays in electricity network upgrades.
NextDC will halt all new developments and land acquisitions, and is considering selling selected sites to recycle capital. The stock, now at its lowest since January, was the top performer on the ASX200 index. Despite AI investments flowing in, investors are questioning the viability of AI spending amid soaring costs. NextDC now anticipates net revenue of A$475 million to A$500 million in 2027, down from prior estimates of A$615 million to A$640 million.
The company also revised its 2027 EBITDA forecast from A$385 million to A$410 million to A$245 million to A$265 million. Delays in power supply upgrades at the M3 Melbourne data centre, caused by community opposition, are expected to affect capacity delivery until 2028.
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- Australian AI data centre operator NextDC shares shed 44% on revenue delay channelnewsasia.com
