A data centre power gap is now visible across the two biggest Australian markets. Bloomberg reviewed more than 40 large centres planned or under construction in Sydney and Melbourne, representing more than $70 billion of projected investment. Just 23 percent have confirmed publicly that they have secured electricity supply or grid connections.
In Sydney the figure is seven of 28. In Melbourne it is three of 15. Bloomberg contacted 25 developers to check public disclosure on power and the status of the projects. Nine declined to comment or did not answer directly on future sites. The rest did not respond.
What the data centre power gap looks like on the ground
The consequences are already visible. NextDC cut its FY27 guidance on Wednesday after delays to electricity upgrades at its M3 Melbourne data centre. About $140 million in contracted revenue came out of the forecast. The stock fell 41.7 percent and roughly $3 billion of market value disappeared in a session. Residents had blocked the installation of transmission lines serving the site. NextDC has since paused all new developments and land acquisitions for the foreseeable future.
The same week the AFR reported that borrowing costs for NextDC and for CDC Data Centres have risen sharply. NextDC has had to reassure bondholders it has enough funding to get existing projects back on track. A $155 billion national pipeline is now facing higher financing costs at the same time as power connections remain unconfirmed for most of the large sites in the two biggest cities.
Why the confirmed-power number matters
Operators have spent two years saying the constraint is not demand. It is power, water and planning approvals. The Bloomberg count is the first public tally of how few of the big Sydney and Melbourne projects have actually locked the electricity. The rest are still in the queue, or have not said.
Melbourne is the tighter market. Only three of the 15 large projects there have confirmed supply. That is the city where NextDC’s revenue already slipped because the network upgrade did not arrive on time. Sydney is better, but still only a quarter of its large projects are confirmed.
