EQS-Adhoc: NEXTDC Limited: M3 Melbourne Power Delay and Revised FY27 Guidance
EQS-Ad-hoc: NEXTDC Limited / Key word(s): Statement/Statement
NEXTDC Limited: M3 Melbourne Power Delay and Revised FY27 Guidance
20-Oct-2026 / 23:39 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by [1]EQS News – a service of [2]EQS Group.
The issuer is solely responsible for the content of this announcement.
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NEXTDC Limited (ASX:NXT) (‚NEXTDC‘ or the ‚Company‘). The ASX Market
Announcement of the below release can also be viewed at
[3] www.nextdc.com/investor-centre. The information is being provided for the
holders of NEXTDC’s A$1,100,000,000 1.75 per cent. Subordinated Convertible
Notes due 2031 (ISIN XS3485473303) admitted to trading on the Vienna MTF of the
Vienna Stock Exchange.
ASX Release
21 October 2026
M3 Melbourne Power Delay and Revised FY27 Guidance NEXTDC Limited (ASX: NXT)
(“NEXTDC” or the “Company”) revises its net revenue, earnings and capital
expenditure guidance for the financial year ending 30 June 2027 (“FY27”),
together with an update on its liquidity position at 30 September 2026.
The revision primarily reflects delays to electricity network works by Jemena
Electricity Networks (Vic) Ltd (“Jemena”), which defer the next increase in
grid supply to NEXTDC’s M3 Melbourne data centre (“M3”) and, with it, the
delivery and billing of contracted capacity. Jemena has advised NEXTDC that it
has suspended parts of those works because of community and stakeholder
opposition. Summary[4][1]
• M3 Melbourne power: delays to Jemena’s electricity network works mean the
next increase in grid supply to M3 is now expected in FY28, deferring the
delivery and billing of contracted capacity. The Victorian Government’s
planning decision on M3 Stages 6 and 7 is now expected only after the
Victorian State election on 28 November 2026
• FY27 net revenue[5][2] guidance revised, excluding the affected M3
contracts: A$475 million to A$500 million, down from A$615 million to A$640
million[6][3]
• FY27 Underlying EBITDA[7][4] guidance revised, excluding the affected M3
contracts: A$245 million to A$265 million, down from A$385 million to A$410
million3
• FY27 capital expenditure guidance revised: A$4,500 million to A$5,000
million, down from A$5,250 million to A$5,750 million[8][5]
• Liquidity: A$8,675 million of liquidity at 30 September 2026[9][6]
• Covenants and maturities: in compliance with financial covenants; earliest
scheduled debt maturity is December 2029, with a potential Convertible
Notes holder put option on 17 September 2029[10][7]
The Company’s revised FY27 net revenue and Underlying EBITDA guidance excludes
the revenue and attributable EBITDA of the affected customer contracts at M3
Melbourne, including capacity already billing and any potential service level
credits.
NEXTDC remains in compliance with its financial covenants and will refocus its
capital expenditure on near term contracted customer capacity, eliminating all
material discretionary capital expenditure. It has begun a detailed review of
its capital expenditure program and will announce the outcome by its Annual
General Meeting on 20 November 2026. The Board will also evaluate capital
recycling opportunities, including the potential sale of selected development
sites that are not required in the near term.
NEXTDC Chief Executive Officer and Managing Director, Craig Scroggie, said:
“Jemena has suspended parts of the network works required for the next increase
in grid supply to M3 Melbourne. Jemena has attributed the suspension to
community and stakeholder opposition to the works and to the absence of local
council consent pending further consultation. On Jemena’s current indicative
estimate, we expect that increase during FY28.
“We have taken the affected M3 contracts out of FY27 guidance until we can
reliably estimate their contribution. The August guidance included
approximately A$140 million of each of net revenue and Underlying EBITDA from
those contracts. The timing and scale of their contribution remain uncertain.
“The capacity remains under contract, subject to the customer’s rights, and
construction of the data halls is continuing. We are working with our customer
on a revised power ramp and with Jemena to bring power forward.
“With M3 revenue deferred, we have paused projects not backed by customer
contracts and put that capital behind the capacity our customers have already
contracted. We have approximately A$8.7 billion of liquidity at 30 September
2026 and we are in compliance with our covenants.” M3 Melbourne power delay and
Stages 6 and 7 development approval NEXTDC’s M3 Melbourne data centre is
affected by delays to third-party electricity network works, in particular to
the 66kV line augmentation works of Jemena, the electricity distributor that
supplies power to M3. Jemena suspended parts of those works in September 2026
and has since formally notified NEXTDC that it does not expect to recommence
them before February 2027. Jemena has attributed the suspension to safety
concerns and lack of access to work sites arising from community and
stakeholder opposition to the works and to the local council, as the relevant
road authority, not giving its consent while further community consultation
takes place. Jemena is consulting the community and other stakeholders and
seeking the approvals required to recommence the works safely. NEXTDC supports
that consultation. Whilst NEXTDC already engages with the community around M3,
including through dedicated community engagement staff and newsletters on works
and activities at the site, it intends to continue and build on that through a
community engagement plan for the construction and operation of M3, overseen by
the Board.
Grid supply at M3 is expected to increase in stages. The first increase depends
on Jemena’s works. Based on Jemena’s current indicative estimate, NEXTDC
expects that increase during FY28, with delivery and billing of the contracted
capacity that depends on it to follow shortly thereafter.
Later increases in grid supply at M3 depend on upstream transmission projects
to install new transformers at the Brooklyn Terminal Station. NEXTDC now
expects the first of these projects to be completed later than previously
expected. The Brooklyn Terminal Station upstream projects do not separately
affect the revised FY27 net revenue and Underlying EBITDA guidance, but they
affect the timing of capacity expected to convert to billing after FY28.
Construction of the M3 data halls is continuing within the existing buildings.
However, the Victorian Government’s planning decision on a planning permit for
M3 Stages 6 and 7 (application PA2604231) is taking longer than NEXTDC
expected. The application was lodged in February 2026 under the Victorian
Government’s Development Facilitation Program, which is available to eligible
data centre projects, and is for the planned expansion of NEXTDC’s approved and
partly operational M3 campus. The Victorian Government is due to become subject
to caretaker conventions from 3 November 2026 pending the State election on 28
November 2026, and NEXTDC does not now expect that decision until 2027.
Assuming the permit is granted, the later decision, together with the later
grid supply, delays delivery of the final stages of capacity at M3.
NEXTDC has a good relationship with the affected customer and will continue to
engage constructively with it. NEXTDC intends to work closely with the customer
and with Jemena to bring forward the delivery of power to M3 and to minimise
the impact of the delays. NEXTDC is also assessing the potential implications
of the delays under the affected customer contracts. Those contracts provide
for service level credits where capacity is delivered late or is not fully
powered and, in some circumstances, give the customer rights to terminate. As
part of that assessment, NEXTDC is considering whether relief is available to
it under the force majeure and other relevant provisions of those contracts.
The capacity deferred by the delays to Jemena’s works remains under contract,
subject to the customer’s rights.
NEXTDC will provide further updates, including at its Annual General Meeting on
20 November 2026. Trading update FY27 net revenue and Underlying EBITDA
NEXTDC now expects FY27:
• Net revenue of A$475 million to A$500 million, down from its previous
guidance of A$615 million to A$640 million.
• Underlying EBITDA of A$245 million to A$265 million, down from its previous
guidance of A$385 million to A$410 million.
The revised net revenue and Underlying EBITDA guidance excludes the revenue and
attributable EBITDA of the affected customer contracts at M3 Melbourne,
including capacity already billing and any potential service level credits.
Capacity already billing is excluded because, while parts of Jemena’s works are
suspended, existing grid supply at M3 cannot be relied on to support the full
contracted power ramp in data halls already delivered. NEXTDC is working with
the affected customer on a revised power ramp. The guidance of 27 August 2026
included approximately A$140 million of each of net revenue and Underlying
EBITDA from those contracts, and their exclusion is the main reason for the
reductions in net revenue and Underlying EBITDA guidance. In all other
respects, the revised net revenue and Underlying EBITDA guidance is given on
the same basis as the guidance of 27 August 2026: on a constant currency basis,
with Underlying EBITDA excluding the items described in footnote 4. NEXTDC’s
actual FY27 results will include the contribution of the affected customer
contracts. Service level credits payable on those contracts could reduce
Underlying EBITDA below the revised guidance.
NEXTDC cannot yet reliably estimate the FY27 contribution of the affected
customer contracts at M3 Melbourne, which depends on its discussions with the
affected customer, the customer’s assessment of its rights and obligations
under those contracts, whether relief is available to NEXTDC under their force
majeure and other relevant provisions and the accounting for any service level
credits. NEXTDC will update the market when it can reliably estimate that
contribution. Changes in the expected timing and cost of completing M3
Melbourne are also likely to affect the fair value of NEXTDC’s investment
properties. NEXTDC has not yet quantified that effect and will reflect it in
its results for the half year ending 31 December 2026. The revised FY27
guidance is given before any fair value movement on investment property. FY27
capital expenditure
NEXTDC now expects FY27:
• Capital expenditure of A$4,500 million to A$5,000 million, a reduction of
A$750 million, or 13% to 14%, from its previous guidance of A$5,250 million
to A$5,750 million[11][8].
NEXTDC has begun a detailed review of its capital expenditure program. The
Board has committed to announcing the outcome of that review by NEXTDC’s Annual
General Meeting on 20 November 2026. NEXTDC’s revised FY27 capital expenditure
guidance of A$4,500 million to A$5,000 million reflects a focus solely on
delivering new contracted customer capacity expected to be delivered in the
next 12 to 18 months or development works largely advanced to near completion.
The revised capital expenditure guidance includes approximately A$500 million
of reimbursable customer fitout and approximately A$230 million of capitalised
interest. The previous guidance did not include capitalised interest. Before
capitalised interest, the revised guidance is approximately A$4,270 million to
A$4,770 million, a like for like reduction of approximately A$980 million, or
17% to 19%, from the previous guidance. The reduction primarily reflects the
deferral of spend on uncontracted data centre expansion projects and on
corporate technology and other projects.
To prioritise near term contracted customer capacity, NEXTDC has put all new
development projects and land acquisitions on hold for the foreseeable future.
The Board will also evaluate capital recycling opportunities, including the
potential sale of selected development sites that are not required in the near
term. Liquidity and covenants At 30 September 2026, NEXTDC had liquidity of
A$8,675 million, comprising A$1,275 million of cash and A$7,400 million of
undrawn senior debt facilities and Hybrid Securities.
NEXTDC remains in compliance with its financial covenants as at 30 June 2026,
the most recent half-yearly test date, and expects to comply with them at the
next test date of 31 December 2026.
NEXTDC’s maintenance financial covenants, being a gearing ratio of not more
than 60% and an interest cover ratio of at least 1.5 times[12][9], are given
under the Common Terms Deed Poll (“CTDP”), which applies only to its senior
debt facilities. The interest cover covenant allows NEXTDC to include the
annualised EBITDA of new customer contracts expected to start billing within 24
months of each calculation date.
NEXTDC’s ability to draw all of its A$6,700 million undrawn senior debt
facilities while continuing to comply with those covenants will depend on the
timing of drawdowns and on the expected billing profiles of its new customer
contracts at that time. If there was a material change to expected customer
billing profiles, NEXTDC’s ability to draw down senior debt may be adversely
affected. Delays to grid supply at M3 Melbourne could be such a change.
The Subordinated Notes, Hybrid Securities and the A$1,100 million of 1.75%
Subordinated Convertible Notes due 2031 (“Convertible Notes”) issued on 17
September 2026 sit outside those covenants and carry no maintenance financial
covenants[13][10]. The Subordinated Notes and Hybrid Securities include an
incurrence gearing ratio of not more than 85%.
NEXTDC will continue to assess the effect of the delays to grid supply at M3
Melbourne on its debt facilities, including on its ability to draw down senior
debt while continuing to comply with its financial covenants. Investor briefing
NEXTDC will host an investor briefing on this release at 9:30am (AEDT) on
Wednesday 21 October 2026. The briefing will be webcast at
[14]https://edge.media-server.com/mmc/p/pvmmxoga Forward-looking statements
This release contains forward-looking statements, including the revised FY27
guidance and the expected timing of grid supply, capacity delivery and billing
at M3. They are based on management’s current expectations and assumptions, are
not guarantees of future performance and are subject to known and unknown risks
and uncertainties, many of which are beyond NEXTDC’s control, that could cause
actual results to differ materially. There can be no assurance that actual
outcomes will not differ materially from these statements. There are usually
differences between forecasts and actual results because events and
circumstances frequently do not occur as forecast, and these differences may be
material.
Investors should not place undue reliance on forward-looking statements,
especially in view of current economic conditions, supply chain issues and
other uncertainty and disruption. None of NEXTDC, any member of the NEXTDC
group or their respective officers, employees, agents or any other person gives
any warranty, representation or assurance that any event expressed or implied
in any forward-looking statement will occur.
NEXTDC does not undertake to update forward-looking statements to reflect any
change in its circumstances, financial condition or affairs or in the events or
conditions on which such statements are based, except as required by law or the
ASX Listing Rules.
Authorised for release by the Board of NEXTDC Limited.
ENDS
For more information:
Investor enquiries Media
enquiries
Simon Guzowski Ben Wilson
T: +61 2 8072 4943 Senior
Managing Director, Teneo
E: [15]investorrelations@nextdc.com M: +61 407
966 083
E: [16]ben.wilson@teneo.com
NEXTDC Investor Centre: [17]www.nextdc.com/investor-centre
About NEXTDC
NEXTDC is an ASX 100-listed technology company and Asia’s most innovative Data
Centre-as-a-Service provider. We are building the infrastructure platform for
the digital economy, delivering the critical power, security and connectivity
for global cloud computing providers, enterprise, and Government.
NEXTDC is recognised globally for the design, construction, and operation of
Australia’s only network of Uptime Institute certified Tier IV facilities and
is one of the first data centre operators in the Southern Hemisphere to achieve
Tier IV Gold certification for Operational Sustainability. NEXTDC has a strong
focus on sustainability and operational excellence through renewable energy
sources and delivering world-class operational efficiency. NEXTDC’s corporate
operations have been certified carbon neutral under the Australian Government’s
Climate Active Carbon Neutral Standard.
Our Cloud Centre partner ecosystem is Australia’s most dynamic digital
marketplace, comprising carriers, cloud providers and IT service providers,
enabling local and international customers to source and connect with cloud
platforms, service providers and vendors to build complex hybrid cloud networks
and scale their critical IT infrastructure services.
NEXTDC is powering the intelligence economy.
To learn more, visit [18]www.nextdc.com
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[19][1] Refer to further detail below under “Trading update”
[20][2] Comprises total revenue less direct costs
[21][3] The revised net revenue and Underlying EBITDA guidance excludes the
revenue and attributable EBITDA of the affected customer contracts at M3
Melbourne, including capacity already billing and any potential service level
credits. The guidance of 27 August 2026 included those contracts. Service level
credits payable on those contracts could reduce Underlying EBITDA below the
revised guidance
[22][4] FY27 Underlying EBITDA excludes non-recurring items, costs of
assessing acquisition opportunities, the Growth Incentive Plan announced on 24
February 2025 and costs of international markets other than Malaysia, which is
no longer an early-stage market following the commissioning of KL1 Kuala Lumpur
in May 2026. FY27 guidance is also given before any fair value movement on
investment property
[23][5] FY27 guidance was provided on 27 August 2026 on a constant currency
basis and did not include capitalised interest in capital expenditure guidance.
The revised capital expenditure guidance includes approximately A$230 million
of capitalised interest
[24][6] Liquidity comprises cash of A$1,275 million, undrawn senior debt
facilities of A$6,700 million and the A$700 million Hybrid Securities B Delayed
Draw Series, which is committed, subject to customary conditions, and may be
drawn until 15 April 2027, each at 30 September 2026. Liquidity is non-IFRS
financial information and has not been subject to audit or review
[25][7] Being the A$1,500 million Facility A revolving loan facility, which
matures on 3 December 2029. Holders of the Convertible Notes may require NEXTDC
to redeem them on 17 September 2029 at their principal amount plus accrued
interest
[26][8] See footnote 5 above
[27][9] Both covenants are set by the CTDP dated 3 November 2024, as amended.
The gearing ratio is net senior debt divided by total assets at book value,
attributable to the Australian group. Net senior debt is total debt less total
cash, where total debt excludes subordinated debt such as the Subordinated
Notes, Hybrid Securities and Convertible Notes. The interest cover ratio is
EBITDA, as defined in the CTDP, for the 12 months to each calculation date,
divided by net interest expense. Net interest expense is interest expense,
including capitalised interest and recurring commitment and line fees, less
interest received, and excludes interest on that subordinated debt whose terms
allow its interest to be deferred or capitalised, or not to be paid in cash
during an event of default in respect of senior debt
[28][10] The Subordinated Notes and Hybrid Securities are subject to an
incurrence covenant under which debt or hybrid issuances, material asset
disposals and equity distributions may be made only if the Adjusted Gearing
Ratio, inclusive of all debt of NEXTDC and its subsidiaries (including the
Hybrid Securities) and adjusted for the relevant transaction, does not exceed
85%
End of Inside Information
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20-Oct-2026 CET/CEST News transmitted by [29]EQS Group
View original content: [30]EQS News
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Language: English
Company: NEXTDC Limited
20 Wharf Street
4000 Brisbane City
Australia
ISIN: AU000000NXT8
Listed: Vienna Stock Exchange (Vienna MTF)
LEI Code: 529900RTERU3X7G3D672
EQS News ID: 2419144
End of Announcement EQS News Service
2419144 20-Oct-2026 CET/CEST
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3. https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&url=877ac4d8ce49296440212f88ec34811e&application_id=2419144&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
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