Yesterday afternoon, Infratil Ltd (ASX: IFT) reported that its data centre investment CDC signed Australia's largest-ever data centre contract, a 555MW deal with a US investment grade customer, taking total CDC contracted capacity to over 1 gigawatt.
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What did Infratil report?
- CDC secures a 30-year contract for 555MW in new data centre capacity, with options to extend by 20 years
- Total CDC contracted capacity surpasses 1GW, more than doubling with this agreement
- CDC FY27 EBITDAF guidance remains at A$680m to A$720m; FY28 EBITDAF expected to exceed A$1 billion
- Annualised EBITDAF of approximately A$2 billion projected when all contracted capacity is deployed
- CDC expects FY27 capex of A$3.8bn to $4.2bn (excluding land), supporting construction of new sites
What else do investors need to know?
CDC's contract will use capacity already under development, due to be operational across FY28 and FY29. The 555MW capacity alone represents roughly 40% of the total Australian data centre operating capacity forecast for 2025, underlining CDC's position as the largest provider in Australasia.
CDC's balance sheet remains strong, with A$3.9 billion in cash and undrawn facilities as at 31 March. Earlier this year, CDC shareholders, including Infratil, provided a further A$500 million in equity, but the new contract fits fully within CDC's current growth plan and won't require more capital from investors.
What's next for Infratil?
CDC is aiming for its newly contracted capacity to become operational through FY28 and FY29. Longer-term, CDC continues to develop more sites, with a current pipeline of 1.6GW for future builds through to 2034, and plans for further expansion in response to strong demand.
Moody's recently assigned CDC's Australian business a Baa2 (Stable) credit rating, enhancing access to global debt markets to help fund its construction and growth. All up, Infratil sees CDC's expansion as a major driver of earnings and value for its shareholders.
Infratil share price snapshot
Over the past 12 months, Infratil shares have risen 2%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
