Join our daily newsletter At The Bell to receive exclusive market insights
DigiCo Infrastructure REIT (ASX:DGT) has announced new “customer wins” across its Australian data centre portfolio, prompting the company to lift earnings guidance and accelerate expansion at its flagship SYD1 facility.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
The contracts span hyperscale, enterprise, neocloud, and government customers, with the majority concentrated at SYD1, alongside Brisbane and Adelaide signings.
These wins will lift DigiCo’s contracted IT capacity to 41 megawatts (MW) by June 2026, up from its previously stated target of 27MW. The company noted this represents a substantial increase from the 21MW reported as of June 2025.
In response to rising demand for high-density deployments, DigiCo is advancing the expansion of SYD1. Originally a 9MW project, the facility is being reshaped to deliver additional capacity by mid-2026, utilising its 120MVA of allocated power. The company also indicated it is preparing to bring forward further capacity additions into FY27.
As a result of these developments, DigiCo has updated its FY26 guidance. The company now expects underlying EBITDA between $120 million and $125 million. Growth capital expenditure is projected at $160M to $180M.
This expenditure will be funded from existing cash reserves and undrawn debt facilities. DigiCo also reaffirmed its plan to pay a total distribution of 12 cents per security in FY26, equivalent to 90–100% of forecast funds from operations.
Looking ahead, DigiCo also reported that it anticipates Group Billed IT Capacity will reach at least 85MW by July 2026, comprised of 41MW in Australia and 44MW in North America. This contracted capacity is expected to underpin an annualised run-rate EBITDA of at least $180 million from that date.
DigiCo’s CEO, Chris Maher, said customer demand was continuing to outpace expectations set during the company’s December 2024 IPO. He highlighted surging requirements for AI infrastructure as a key driver. “We are targeting accelerated delivery of the full 88MW SYD1 D&O project earlier than expected,” Maher said. “Our FY26 works program has been reshaped to deliver capacity sooner and capture this growth.”
Maher also noted discussions with potential capital partners remain ongoing, supported by recent recognition of SYD1 as a “certified strategic” facility under the Australian Government’s certification framework.
DGT has been selling at $2.73 heading into Friday.
Join the discussion. See what HotCopper users are saying about DigiCo Infrastructure REIT and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
