NextDC is halting work on projects without signed customer contracts after delays at its flagship Melbourne data centre expansion forced the company to cut earnings forecasts. The move adds to pressure on the Australian operator as rivals Goodman Group and Digital Realty complete the purchase of a 9.9% stake following a sharp share price fall.
Highlights
- NextDC suspends all uncontracted projects following M3 Melbourne expansion delay due to power issues and community opposition, prioritizing only customer-backed developments.
- Melbourne disruption leads to a 42% share price drop after earnings downgrade, affecting up to 11 centres mentioned in its 2026 annual report.
- Goodman Group and Digital Realty acquire a 9.9% stake in NextDC for A$715 million ($492 million), signaling potential collaboration but no immediate takeover plan.
Melbourne delay reshapes development priorities
As reported by Reuters, the Australian data centre operator says a suspension of work on its M3 expansion in Melbourne, caused by power delays and community opposition, pushes it to focus only on projects backed by firm customer commitments.Chief executive Craig Scroggie says the M3 setback makes rebuilding community support the company's top priority. He says any project without a customer contract and a delivery obligation is no longer a priority until the company can show it has resolved the issues and regained trust.
Scroggie does not say how many developments are affected. NextDC had 11 centres in development or planning, according to its 2026 annual report, and the Melbourne disruption sent the company's shares down 42% after the earnings downgrade.
Stake purchase sharpens industry attention
Goodman Group and its New York-listed partner Digital Realty bought a 9.9% stake in NextDC last week for A$715 million, or about $492 million, after the selloff. The two companies say they do not currently plan a takeover offer, but reserve the right to do so later.They also say they are open to potential collaboration with NextDC's board and management on ways to address the challenges facing the company. After the stake purchase, NextDC's share price recovers the ground lost following the earnings writedown, highlighting continued investor interest in Australian data centre capacity despite the operational setback.
In our earlier article on the Nasdaq-100 (NDX) selloff, we covered how the index remained under short- and medium-term technical pressure even as longer-term trend support held. We also highlighted the launch of JQQQ, a blockchain-native fund designed to broaden access to Nasdaq-100 exposure, noting that the structural innovation contrasted with near-term downside risks and key resistance levels traders were watching.
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