Australian data-center operator NextDC lost nearly 42% of its market value Wednesday after electricity-grid delays forced the company to slash its financial outlook and suspend new development projects.
The decline erased roughly A$3 billion of market value and marked the company’s worst trading day since its 2010 listing.
At the center of the problem is NextDC’s M3 data center in Melbourne.
Delays to electricity-network upgrades are expected to defer approximately A$140 million, or about $98 million, of contracted customer revenue during the current financial year.
NextDC now expects fiscal-2027 net revenue of A$475 million to A$500 million, down from its previous A$615 million-to-A$640 million forecast, excluding the affected M3 contracts.
The company also cut its underlying EBITDA outlook to A$245 million to A$265 million from A$385 million to A$410 million.
Capital expenditure guidance was reduced to A$4.5 billion-A$5 billion from A$5.25 billion-A$5.75 billion.
More significantly, NextDC said it would shelve new development projects and land acquisitions for the foreseeable future while reviewing its spending program and potential asset sales.
The episode exposes one of the physical constraints confronting the global AI investment cycle.
Building data centers requires more than processors, servers and financing. Large facilities require substantial and reliable electricity connections, and grid upgrades can take years because of construction requirements, permitting and community opposition.
NextDC said the next increase in electricity supply to its Melbourne M3 facility is now expected in 2028.
The financial consequences demonstrate how infrastructure delays can turn contracted demand into deferred revenue even when customers still want the computing capacity.
The development is particularly notable one day after South Korean AI-infrastructure company Elice suffered a 32% decline during its IPO debut.
Those are separate corporate events, but both illustrate increasing investor scrutiny of the capital requirements and execution risks behind AI infrastructure.
NextDC will provide initial findings from its spending review at its November 20 investor meeting.
