On October 21, the share price of Australian data center operator Nextdc took a significant nosedive. Earlier, the company revealed that its M3 data center project in Melbourne had been postponed owing to resistance from the local community. In light of this, Nextdc was contemplating invoking force majeure clauses and revising its profit projections downward.

In a formal statement, Nextdc disclosed that it had adjusted its earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the fiscal year concluding in June 2027. The original estimate, which ranged from AUD 385 million to AUD 410 million, had been slashed to a new range of AUD 245 million (approximately USD 172 million) to AUD 265 million. This downgrade was attributed to the halt in power connection work by electricity provider Jemena Electricity Networks, a consequence of the local community and relevant stakeholders voicing their opposition to the M3 data center project.

Currently, Nextdc is in the process of reassessing its capital expenditure strategies. As a result, the company has put a hold on all new development initiatives and land acquisition endeavors.