NextDC Shares Plunge 40% After Profit Forecast Cut

Shares of the Australian company NextDC fell 39.5% this Wednesday. The move came immediately after the company drastically slashed its annual earnings projections for the 2027 fiscal year.

The company revised its revenue target to a range between 475 million and 500 million Australian dollars. The previous forecast reached as high as 640 million Australian dollars. Operating profit was also adjusted downward in light of new operational challenges.

The core reason for the forecast cut involves delays in power supply for the M3 facility in Melbourne. The distributor Jemena suspended electrical infrastructure work due to safety concerns and a lack of consent from the local council. Work is not expected to resume before February 2027.

Opposition from residents and stakeholders has blocked access to construction sites. Financial market analysts warn that these issues could impact the company's results beyond the 2027 fiscal year. The case exemplifies the growing resistance against data center expansion around the world.

This episode reflects the difficulty physical infrastructure faces in keeping up with technological demand. Uncertainty regarding the sector's expansion capacity may raise the risk premium on technology assets and reduce appetite for companies dependent on large-scale energy projects.