Key Highlights

  • NEXTDC (ASX:NXT) shares were up 6.92% at $5.72 during the trading session on 22 October 2026.
  • FY27 net revenue guidance was revised to A$475 million to A$500 million, with Underlying EBITDA guidance at A$245 million to A$265 million.
  • Liquidity was A$8,675 million at 30 September 2026, and a capital expenditure review outcome is due by the 20 November 2026 AGM.

NEXTDC Ltd (ASX:NXT) shares were up 6.92% at $5.72 during the trading session on 22 October 2026, at 11:55 am. The S&P/ASX 200 stood at 8,774.90, down 0.64% (56.40 points), and the All Ordinaries at 8,897.80, down 0.66%, at the same time. NEXTDC is an ASX 100-listed technology company that builds and operates data centres, supplying power, security and connectivity to cloud providers, enterprises and governments across Australia and Malaysia.

About the Company

NEXTDC describes itself as an ASX 100-listed technology company and a Data Centre-as-a-Service provider. It states that it operates Australia's only network of Uptime Institute certified Tier IV facilities and was among the first data centre operators in the Southern Hemisphere to achieve Tier IV Gold certification for Operational Sustainability. Craig Scroggie is Chief Executive Officer and Managing Director. Facilities named in the announcement include M3 Melbourne and KL1 Kuala Lumpur, commissioned in May 2026.

Business Overview

The company designs, constructs and operates data centres and supports a Cloud Centre partner ecosystem of carriers, cloud providers and IT service providers. Customers contract data centre capacity that is delivered and billed as power becomes available at each site. Guidance is expressed as net revenue, which comprises total revenue less direct costs, and Underlying EBITDA, which excludes non-recurring items.

M3 Melbourne Power Delay

In its announcement dated 21 October 2026, NEXTDC reported that Jemena Electricity Networks (Vic) Ltd has suspended parts of the 66kV line augmentation works needed for the next increase in grid supply to M3 Melbourne. Jemena attributed this to community and stakeholder opposition and the absence of local council consent, and does not expect to recommence before February 2027. On Jemena's current indicative estimate, NEXTDC expects the supply increase during FY28.

The Victorian Government's decision on the planning permit for M3 Stages 6 and 7 is now not expected until 2027. The application was lodged in February 2026, and caretaker conventions begin on 3 November 2026 ahead of the 28 November 2026 election. Data hall construction is continuing.

Revised FY27 Guidance

The company revised its FY27 net revenue guidance to A$475 million to A$500 million, from A$615 million to A$640 million. Underlying EBITDA guidance was revised to A$245 million to A$265 million, from A$385 million to A$410 million. The revisions exclude the affected M3 contracts, which contributed approximately A$140 million each of net revenue and Underlying EBITDA to the 27 August 2026 guidance.

Capital expenditure guidance was revised to A$4,500 million to A$5,000 million, from A$5,250 million to A$5,750 million, and includes about A$230 million of capitalised interest. New development projects and land acquisitions are on hold.

Liquidity and Covenants

NEXTDC reported liquidity of A$8,675 million at 30 September 2026, made up of A$1,275 million of cash and A$7,400 million of undrawn senior debt facilities and Hybrid Securities. The company stated it is in compliance with its financial covenants and expects to comply at the next test date of 31 December 2026. The earliest scheduled debt maturity is December 2029.

Related Sector Context

Data centre operators supply the physical infrastructure behind cloud computing and are dependent on grid connections, transmission upgrades and planning approvals to bring contracted capacity into service. On 22 October 2026 the S&P/ASX 200 was down 0.64% and the All Ordinaries down 0.66% at 11:55 am, while NEXTDC shares were up 6.92% at the time of the data.

Risks to Weigh In

The announcement identifies several uncertainties. The timing and scale of the affected M3 contracts' contribution remain uncertain, and the customer holds rights that in some circumstances include termination. Service level credits may apply where capacity is delivered late or not fully powered, and the company is assessing whether force majeure provisions offer relief. The ability to draw its A$6,700 million of undrawn senior debt while complying with covenants depends on drawdown timing and expected billing profiles, and delays to grid supply at M3 could affect that.

Catalysts on Watch

NEXTDC has committed to announcing the outcome of its capital expenditure review by its Annual General Meeting on 20 November 2026, where it will also provide further updates. The Victorian State election is scheduled for 28 November 2026, with the planning decision on M3 Stages 6 and 7 not expected until 2027. The company will report the fair value effect on investment property in its results for the half year ending 31 December 2026, and will update the market when it can reliably estimate the contribution of the affected contracts.

Putting It Together

NEXTDC shares were up 6.92% at $5.72 during the 22 October 2026 session, a day after the company lowered its FY27 net revenue, Underlying EBITDA and capital expenditure guidance. The announcement sets out the Jemena works suspension, the A$8,675 million of liquidity and a series of dated milestones through November 2026 and into 2027.