What happened
Event / reporting date: October 21, 2026; related Nscale reporting October 19.
NEXTDC expects the next grid-supply increase at M3 Melbourne in fiscal 2028. It removed affected contracts representing approximately A$140 million of net revenue and underlying EBITDA from its fiscal-2027 outlook, including capacity already billing. The company paused uncontracted development and is reviewing capital spending. Separately, WSJ attributed Microsoft's exit from Nscale's Loughton site to power issues, while reporting Microsoft's continuing commitment to the wider partnership.
Why it matters for owners, operators and investors
U.S. owners should stress-test power dates, customer remedies, drawdown conditions and supplier commitments together. An energized first phase does not eliminate risk in later contracted ramps.
NEXTDC has not quantified final customer credits, contract outcomes or property-value effects. It says it complies with covenants, but delayed billing can affect access to undrawn debt.
- 01
What happens to cash and borrowing capacity if power slips a year?
- 02
Which customer and supplier obligations survive that delay?
- 03
Which projects should retain capital under a slower ramp?
What to watch next
NEXTDC's November 20 capital review, revised power milestones and customer negotiations.
- NEXTDC company disclosure via EQS ↗NEXTDC company disclosure via EQS
- WSJ — Nscale update ↗WSJ