Story perspectives

NextDC Cuts FY2027 Forecasts After M3 Power Delays

By Drooid · Oct 21, 2026, 2:08 PM UTC · How we work

Summary

NextDC Cuts Forecasts

NextDC cut FY2027 revenue and EBITDA forecasts after power-supply delays at its M3 Melbourne data centre.
Shares fell up to 44%, erasing roughly A$3.1 billion of market value.
Net revenue guidance dropped to A$475-A$500 million, down from A$615-A$640 million.
Jemena Electricity Networks halted M3 work because of community opposition and missing council consent, delaying it until at least February 2027.

Summary

Hauser Flags Worse Inflation

RBA Deputy Governor Andrew Hauser warned inflation outlook is “materially worse,” pushing expectations to a November rate hike.
The warning triggered a sell-off on the ASX, pressuring rate-sensitive technology and infrastructure stocks.
NextDC’s plunge deepened the equity decline, linking data-center troubles to macro-economic uncertainty.
Analysts said Melbourne’s legacy grid capacity is a systemic bottleneck for Australia’s AI-driven cloud expansion.

Summary

West Footscray Residents Blockade

Residents of West Footscray organized blockades and WhatsApp coordination to stop Jemena’s 15-metre power pole installation.
Senator David Pocock proposed a 5 percent levy on Australian data centres, aiming to raise over $500 million by 2030.
Victorian authorities banned data centres within 150 metres of homes and schools and required renewable energy use.
The dispute could influence the November 28 state election, possibly moving the West Footscray seat away from Labor.

History

Historical Context

In 1996 California passed AB 1890, deregulating parts of the electricity market and launching a spot market in 1998. By mid-2000 wholesale prices had surged up to 800 % and rolling blackouts hit 1.5 million customers in March 2001, prompting PG&E’s April 2001 bankruptcy after Enron’s market manipulation. The crisis exposed the limits of capped retail rates and spurred later reforms.

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NextDC Cuts Forecasts

NextDC cut FY2027 revenue and EBITDA forecasts after power-supply delays at its M3 Melbourne data centre.
Shares fell up to 44%, erasing roughly A$3.1 billion of market value.
Net revenue guidance dropped to A$475-A$500 million, down from A$615-A$640 million.
Jemena Electricity Networks halted M3 work because of community opposition and missing council consent, delaying it until at least February 2027.

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