NextDC shares fall 40% after cutting earnings forecast
Australian data center operator cites power supply delays and community opposition at Melbourne facility.
At a glance
- NextDC's share price fell 40% following the earnings forecast cut
- Power supply delays at the Melbourne facility prompted the downgrade
- Local community and stakeholder opposition contributed to the delays
NextDC, an Australian data center operator, saw its share price drop 40% following a reduction in its earnings forecast. The company attributed the downgrade to power supply delays at its Melbourne facility, which it said resulted from local community and stakeholder opposition.
The announcement marks a significant setback for the operator, which has faced challenges in expanding its infrastructure amid resistance from local interests.
Why it matters
The forecast cut reflects broader challenges data center operators face in expanding capacity amid growing local resistance to infrastructure projects.
Original reporting
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