Team Veye October 21, 2026

NEXTDC has cut FY2027 guidance as Melbourne data centre power delays push growth into FY2028

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NEXTDC Limited (ASX: NXT) announced revised FY2027 financial guidance on 21 October 2026 after delays to electricity network works affected its M3 Melbourne data centre while the company outlined measures to protect its financial position and prioritise demand from contracted customers.

The delay arose because Jemena Electricity Networks suspended parts of its electricity infrastructure works amid community opposition and the need for further consultation. The next increase in grid supply at M3 is now expected in FY2028 which means the delivery and billing of some contracted data centre capacity will be delayed.

NEXTDC has revised its FY2027 net revenue forecast to $475 million-$500 million from the previous range of $615 million-$640 million.

The company has also cut its underlying EBITDA guidance to $245 million-$265 million compared with the earlier forecast of $385 million-$410 million because the affected M3 customer contracts are no longer included in these estimates.

NEXTDC for FY2027 has set a lower capital expenditure forecast of $4.5 billion-$5.0 billion instead of $5.25 billion-$5.75 billion as the company directs funds towards contracted capacity and projects close to completion.

The affected M3 capacity is under contract subject to customer rights and construction of the data halls continues as NEXTDC works with its customer and Jemena to secure earlier power availability. NEXTDC is still assessing potential service-level credits and contractual implications which is why the final financial impact of the delay is uncertain.

The company had substantial liquidity of $8.675 billion as of 30 September 2026 which included $1.275 billion in cash along with $6.7 billion in undrawn senior debt facilities and $700 million in committed hybrid securities.

The company has paused new development projects and land acquisitions for the foreseeable future and removed material discretionary capital expenditure that is not required for near-term contracted capacity.

Management is also assessing capital recycling opportunities including the possible sale of selected development sites that are not needed in the near term.

NEXTDC retains key competitive advantages through its network of Tier IV-certified data centre facilities and its operational expertise.

(Source: Company Announcements)

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