# NextDC Shares Crash After Melbourne Power Upgrade Blocked

> NextDC shares plummet 37% as Melbourne council blocks critical grid upgrade for data center.
- Title: NextDC Shares Crash After Melbourne Power Upgrade Blocked
- Summary: NextDC shares plummet 37% as Melbourne council blocks critical grid upgrade for data center. NextDC shares dropped 37% after Melbourne's West Footscray…
- Keywords: nextdc, melbourne council, m3 melbourne, grid upgrade, fy27 guidance, data center, ai infrastructure, startups, business, Shares, Crash, Melbourne
- Source: Startup Fortune — https://startupfortune.com/nextdc-shares-crash-37-after-melbourne-grid-upgrade-gets-blocked
- Published: 2026-10-21T14:11:22+00:00
- Read time: 1 min
- Topics: nextdc, melbourne council, m3 melbourne, grid upgrade, fy27 guidance, data center, ai infrastructure, startups, business
## NextDC shares crash
NextDC shares plummeted 37% after Melbourne's West Footscray council blocked a critical grid upgrade for its M3 data center.

> nextdc asked the asx to halt its shares on october 19
## FY27 financial guidance cut
NextDC revised its FY27 EBITDA guidance from a$385 million to a$245 million and net revenue from a$640 million to a$500 million.

> the ebitda for the financial year through june 2027 will land between a$245 million and a$265 million
## M3 data center blocked
Melbourne's West Footscray council refused to approve a 225-megawatt grid connection for NextDC's M3 data center.

> a council in melbourne's west hasn't signed off on a power line upgrade
## Jemena utility delay
Jemena, the electricity distributor, said work on the grid upgrade won't resume before february 2027 due to community opposition.

> jemena told nextdc it does not expect to resume the work before february 2027
## AI infrastructure bottleneck
The delay highlights a critical bottleneck in ai infrastructure: local council approvals for grid upgrades, not chip shortages or financing.

> this isn't an isolated case microsoft recently pulled out of its data centre deal with uk operator nscale
## Investor impact
NextDC's stock dropped over 40% after trading resumed, wiping out annual gains and down 25% over the past year.

> when trading resumed the stock dropped more than 40 percent wiping out its gains for the year
## What's next
NextDC's board faces pressure to address the grid connection delay before its fy27 financial results.

> nextdc's board had not yet met to assess the delay's full impact when it requested the trading halt
## Key takeaway

NextDC shares dropped 37% after Melbourne's West Footscray council refused to approve a power line upgrade for its M3 data center, halting its FY27 financial guidance.