NextDC, an Australian operator, saw its stock plunge as much as 44% to A$5.15 after cutting its earnings forecast by over a third. The decline marks a sharp reversal from June, when shares traded above A$16. Data centers have become critical infrastructure for AI companies, making the operator's guidance cut a sign of strain in the sector.
The sell-off reflects broader challenges facing data center providers as they balance surging demand for AI capacity with rising costs and deployment timelines. NextDC's earnings miss adds to mounting concerns about the profitability of AI infrastructure plays amid a rush to build out capacity for and other compute-heavy workloads.
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