NEXTDC Halts Shares Over Power Delay at Melbourne M3 Data Centre

NEXTDC asked for a trading halt on its shares on Monday, 19 October 2026, while it assesses a delay to power supply at its M3 data centre in Melbourne. The halt lasts until the company releases an announcement or trading begins on Wednesday, 21 October 2026, whichever comes first.

The company said the review covers possible effects on its fiscal 2027 guidance and that its board had not yet met on the issue. According to The Edge Malaysia, NEXTDC expects to make an announcement within two days.

What the Halt Covers, and What Is Still Unconfirmed

In August, NEXTDC forecast FY27 underlying EBITDA of A$385 million to A$410 million. The company is assessing how the M3 delay affects that forecast, and said on Monday that the effect on guidance was still under assessment.

NEXTDC said the halt would allow it to meet its continuous disclosure obligations while it evaluates the impact of the power supply delay. The board had not yet met on the issue.

Bloomberg reports that the shares have fallen by around a third since the end of August. The Star reports that NEXTDC was not immediately available to respond to questions.

NEXTDC's statement did not clarify what caused the power delay, and the assessment had not been announced at the time of reporting.

Power Lines and Local Concern Relate to the M3 Delay

Citi analysts Siraj Ahmed and Howard Suen say the delay likely relates to Jemena pausing work on power lines meant to serve M3. Citi estimates that about 70 MW of the 155 MW of incremental Victorian billing it had assumed for FY27 could be pushed back.

Citi says up to A$25 million of FY27 earnings could be at risk, and that the full M3 billing capacity is probably not affected.

Bloomberg reports that connecting M3 required Jemena to install 15-metre concrete poles through residential streets to carry 66,000-volt lines. Jemena paused that work in September after concerns from residents and local government, and later said the work remained on hold. Jemena declined to answer questions about its commercial relationship with a client.

Victoria's Grid Limits and the Wider Data-Centre Market

Bloomberg reports that the Commonwealth Bank of Australia estimates the data-centre buildout could reach A$150 billion by 2030. It also reports that Victoria accounts for about a third of data-centre facilities seeking transmission connections nationally.

The Star's version of the report adds that Australia is retiring ageing coal plants and relying more on wind and solar, while the facilities need reliable around-the-clock power.

AusNet Services said demand from advanced data-centre proposals in Victoria exceeds the state's existing capacity. Jemena and Powercor warned in August that data centres were seeking more power in Melbourne's west, where M3 is located, than the grid could accommodate.

Accela Research's Naomi Wagura says the problem points to a broader infrastructure challenge beyond M3's potential delay. Wagura says data centres can be built much faster than the electricity infrastructure needed to supply them.

How the Delay Affects M3 Capacity and Billing Timing

M3 serves cloud, AI and large-scale enterprise platforms and is partially operable. Bloomberg reports that 42 megawatts came online in fiscal 2026, with another 165 megawatts under development.

Citi says the paused line project would likely delay part of the billing. Its estimate rests on the 155 MW of incremental Victorian billing it assumed for FY27.

Bloomberg reports that Wagura said the delay could defer revenue and cash receipts, with the impact depending on how much capacity is affected and how long the delay lasts.

The cause of the delay and the effect on FY27 guidance remain unresolved until NEXTDC publishes its update.