Yesterday, Infratil Ltd (ASX: IFT) announced that its data centre business, CDC, has secured about 100MW of new contracted capacity. This highlights strong ongoing demand and further solidifies CDC's leadership in the fast-growing Australasian data centre market.
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What did Infratil report?
- CDC secured approximately 100MW of new contracted capacity.
- About 95% of forecast lease revenues are now under contract following recent deals.
- CDC remains on track to double FY25 earnings by FY27.
- Strong customer demand driven by cloud and AI workloads.
What else do investors need to know?
CDC's ability to contract significant new capacity points to ongoing demand from cloud and artificial intelligence customers. The data centre operator's technological advantage and experience are key factors behind its ongoing success.
Recent contract wins mean nearly all of CDC's forecast lease revenues are now locked in, offering investors strong visibility of future earnings. Infratil reaffirmed its confidence in securing the remainder of its upcoming capacity.
What did Infratil management say?
Infratil CEO Jason Boyes said:
This announcement provides high visibility that CDC remains on track to double FY25 earnings by FY27. With other contracts signed since May, approximately 95% of forecast lease revenues are now under contract, and we remain confident in contracting the remaining capacity.
What's next for Infratil?
Infratil expects CDC to remain at the forefront of the Australasian data centre sector, with a strong pipeline for further growth. The company is focused on meeting the increasing demand for large-scale, future-proof campuses, especially those tailored to the rising needs in artificial intelligence.
Management's outlook remains positive as CDC continues to attract new customers and secure long-term contracts, positioning Infratil for robust earnings growth over the next few years.
Infratil share price snapshot
Intrafil shares have fallen around 1% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen approximately 8%.
