Australian data center operator NextDC saw its stock price plummet by 39.5% on Wednesday, following the company's reduction of its annual profit forecasts due to power supply delays at its Melbourne facility caused by opposition from local communities and stakeholders.

The company has lowered its revenue guidance for the fiscal year 2027 from the previously estimated A$615 million to A$640 million to A$475 million to A$500 million; at the same time, it has reduced its earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance from A$385 million to A$410 million to A$245 million to A$265 million.

NextDC indicates that the power supply delay is due to the suspension of infrastructure upgrades at its M3 Melbourne data center. The power distributor Jemena expects that construction will not resume until February 2027 at the earliest.

According to Jemena, the reasons include safety concerns arising from community opposition, restricted access to the construction site, and the fact that no consent has been obtained from the local council yet, pending further consultation with the community.

Citi stated in a report that power supply delays for NextDC could affect profitability after the fiscal year 2027, due to reasons including delays in the approval of the M3 expansion project and the time taken for transformer upgrades exceeding expectations.

This controversy reflects the growing opposition to data center construction on a global scale, with concerns from the outside world about its impact on local communities and the environment.

NextDC's stock price has been falling for seven consecutive weeks and is expected to continue this downward trend in the eighth week as well.