NextDC crashes 44% on forecast cut and development freeze, deepening AI data-center caution
What happened
Australian data-center operator NextDC shed nearly half its market capitalization on Wednesday after sharply cutting its forward forecasts and putting future expansion on hold. Delays to electricity network upgrades (by Jemena Electricity Networks) at its major Melbourne M3 facility mean about A$140 million ($98 million) of contracted customer revenue will be deferred this financial year, with the next capacity increase now expected only in 2028. NextDC cut its 2027 net revenue outlook to A$475-$500 million from A$615-$640 million, cut 2027 underlying EBITDA guidance to A$245-$265 million from A$385-$410 million (both excluding the affected M3 contracts), shelved all new development projects and land acquisitions 'for the foreseeable future,' and said it will evaluate capital recycling including potential site sales. The stock closed down 41.7% — its worst session since listing in 2010 — and its lowest since January 18.
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Start your free 14-day trialWho’s affected
- NextDC (NXT.AX) — closed down 41.7%, about A$3 billion wiped in its worst day since its 2010 listing, biggest ASX200 loser. U.S. read-through is sentiment-driven: data-center operators and neoclouds (CoreWeave, Nebius) and the broader AI-hardware complex (Dell, Super Micro, chip stocks) face repricing risk if investors start doubting AI data-center economics
- SMCI's strong raise this week is the counter-data point.
Sources