Two law firms probe NEXTDC disclosure as Goodman and Digital Realty take 9.9%

Gordon Legal and Shine Lawyers have each opened investigations into NEXTDC over alleged disclosure failures linked to a paused power-pole rollout in Yarraville, Head Topics reported on 6 November 2026. The report said the shares fell 42 per cent, wiping $3 billion from the company's value, and described two shareholder class actions as looming. The allegations are those of the law firms' investigations and have not been tested.

The dispute concerns Jemena's 66kV power-line works to supply NEXTDC's M3 data centre in West Footscray. NEXTDC said on 21 October that Jemena suspended parts of the works in September 2026, citing safety concerns and lack of site access amid community opposition, and that the local council had not given consent while consultation continued. Jemena has told NEXTDC it does not expect to restart before February 2027. Residents objected to 15-metre poles carrying up to 66,000 volts, and Head Topics reported that some organised street blockades.

NEXTDC cut its FY27 net revenue guidance to between $475 million and $500 million from between $615 million and $640 million. Underlying EBITDA guidance fell to between $245 million and $265 million from between $385 million and $410 million, and the affected M3 contracts accounted for about $140 million of both revenue and EBITDA in the earlier guidance. The company also disclosed that the affected contracts allow for service level credits if capacity is late and, in some circumstances, give the customer termination rights, and said it is considering whether force majeure relief is available.

In a joint ASX statement on Monday 9 November, Goodman Group and Digital Realty said their 50:50 vehicle, Ackland Investments No.1, had acquired 9.9 per cent of NEXTDC at an average of $9.22 a share. The substantial holder notice lists 75,215,528 shares, bought between 3 and 6 November, with most acquired in an institutional book build at $9.50 on 4 November. The pair said neither has "any present intention" of making a takeover offer but both reserve the right to do so. NEXTDC's board has called the buying opportunistic, said it has received no proposal, and appointed Barrenjoey, UBS, Cadence Advisory and Mallesons as advisers.

Chief executive Craig Scroggie told the UBS Australasia Conference on Monday that work on projects without customer contracts was no longer a priority. In the company announcement he said: "With M3 revenue deferred, we have paused projects not backed by customer contracts and put that capital behind the capacity our customers have already contracted," he said. He did not say how many projects are affected, and NEXTDC listed 11 centres in development or planning in its 2026 annual report. NEXTDC's board is due to report on its capital expenditure review at the 20 November AGM.