Shares in data centre owner Infratil Ltd (ASX: IFT) are among the best performers on the S&P/ASX 200 Index (ASX: XJO) on Thursday after the company announced a new contract win.
The company's shares were trading 6.6% higher by mid-afternoon on Thursday to be changing hands at $11.11.
Infratil told the ASX in an announcement that data centre company CDC, in which it owns a 49.76% stake, was about to announce it had won a new contract involving US chip manufacturing behemoth Nvidia Corp (NASDAQ: NVDA) and Firmus Technologies.
As the company explained:
The first stage of the new partnership is underpinned by approximately 40MW of CDC data centre capacity to deliver innovative AI factory capability. This will be located at a CDC site in Melbourne and is expected to start being delivered by April 2026.
Infratil Chief Executive Officer Jason Boyes said it was a significant milestone for CDC, which was experiencing a surge in demand for its "future-proof" data centre campuses.
It is great to match CDC's homegrown capability in delivering world-leading data centres with the expertise of another Australian hi-tech innovator bringing AI capability to the market. Neocloud providers offer customers a new option for accessing AI factory computing capability. This is an emerging customer segment for CDC and underscores the rapid diversification of data centre demand more generally.
Infratil said it would provide more details on CDC's progress at its half-year results announcement on November 13.
CDC also announced a new 100MW data centre contract in late September, with Mr Boyes saying at the time that the company was on track to double its FY25 earnings by FY27.
Diversified portfolio
Infratil owns a portfolio of investments as well as CDC, in areas such as energy, financial services, and medical imaging.
The company has a target of divesting approximately $1 billion worth of its investments, which will be reinvested in growth drivers such as CDC. In September, the company announced a strategic review of its Australian medical imaging business, Qscan, in which it owns a 57% shareholding. That stake was last valued at NZ$460 million ($407.2 million).
The company, during its recent investor day held in Sydney in September, stated that it aimed to achieve returns of 11% to 15% over a rolling 10-year period.
The company also announced the sale of its 50% stake in RetireAustralia for NZ$328 million ($290.3 million) in August.
Infratil was valued at $10.2 billion as at the close of trade on Wednesday.
