NextDC Valuation Drops $3 Billion After Data Centre Delays
NextDC shares plunged over 40 percent after the company slashed profit forecasts due to power infrastructure delays at its Melbourne data centre.
NextDC saw its market valuation drop by $3 billion on October 22, 2026, as shares plunged more than 40 percent. The decline followed the company's decision to slash profit forecasts and construction spending, triggered by delays at the West Footscray M3 data centre in Melbourne.
Energy distributor Jemena suspended upgrades to high-voltage power lines necessary for the facility after facing community opposition and a lack of consent from the local council. In response, Craig Scroggie, CEO of NextDC, announced the company will pause further land purchases and cease work on any sites that do not have existing customer commitments.
The downturn has impacted the broader sector, contributing to the cancelled float of Firmus. Meanwhile, Shine Lawyers has launched an investigation into a potential class action. The firm is examining whether NextDC issued financial guidance without reasonable grounds or failed to inform investors of material impacts regarding the infrastructure challenges.
