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It’s probably going to be a good run for anything data centres. I touched on that yesterday and on Thursday now there are fresh indications to be bullish.
Today we’ve seen HMC Capital-backed Digico REIT (ASX:DGT) hit a new all-time at $4.80; a 3% jump in the first half hour of Thursday trades.
The company is a relatively recent entrant onto the market and its debut was, while not a disaster, something of a flop. Or, at least, contained flop-like qualities.
That shaky first start could soon be well forgotten.
Driving upward momentum on Thursday is around 48-hour-old news from Donald Trump, freshly back in office at the head of the world’s largest economy, that the country will spend US$500 billion on data centre buildouts intended to support AI, broadly.
It’s a consortium of tech companies behind the whole initiative, working alongside the White House, and ultimately symbolises that the latest big tech thematic remains in vogue.
Just don’t look at iPhone 16 sales. If you peer too closely at those storefront numbers, it starts to look like AI is something Wall Street wants – and not necessarily what most consumers might want.
At any rate, the value proposition here for Digico Infrastructure REIT is obvious, even if reliant on contagion sentiment from the U.S.
But one must note the spending target is ambitious. With all of this talk of billionaires and billions in recent years, it can be easy, somehow, to overlook how much money US$500B is.
That’s half a trillion dollars. Apparently just for AI data centres.
I wouldn’t be the first to raise an eyebrow. Time will tell, but for Digico shareholders, it’s a good day.
HMC Capital, too, are probably breathing a sigh of relief. One of the ASX’s biggest IPOs in recent history is now above its launch price.
DGT last traded at $4.80/sh.
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