DigiCo Infrastructure REIT has secured new customers boosting Australian contracted IT capacity to 41MW by mid-2026, prompting an upward revision of its FY26 earnings guidance and accelerated development plans at its flagship SYD1 data centre.
- Australian contracted IT capacity target raised from 27MW to 41MW by June 2026
- Accelerated expansion and reshaping of SYD1 data centre to meet high-density AI demand
- FY26 underlying EBITDA guidance increased to $120-125 million
- Growth capital expenditure forecast at $160-180 million, funded by cash and undrawn debt
- Group billed IT capacity expected to reach at least 85MW by July 2026, supporting $180 million EBITDA run-rate
Strong Customer Wins Drive Capacity Growth
DigiCo Infrastructure REIT (ASX – DGT) has announced a significant boost in contracted IT capacity across its Australian data centre portfolio, primarily driven by new customer wins at its SYD1 site in Sydney, as well as additional signings in Brisbane and Adelaide. These contracts have lifted the Australian contracted IT capacity target to 41MW by June 2026, a substantial increase from the 27MW target set just two months prior.
Accelerated SYD1 Expansion to Capture AI Infrastructure Demand
The company is responding to robust market demand for larger, denser deployments; particularly for high-performance AI infrastructure; by accelerating the expansion of SYD1. Leveraging the flexible design of the SYD1 facility, DigiCo has reshaped and materially expanded its initial 9MW project, aiming to deliver additional high-density capacity by mid-2026. Preparations are also underway to bring forward further capacity expansions during FY27, underscoring DigiCo’s commitment to meeting surging demand.
Upgraded Financial Outlook Reflects Growth Momentum
Reflecting these developments, DigiCo has updated its FY26 financial guidance. The REIT now expects underlying EBITDA in the range of $120-125 million, up from previous forecasts. Growth capital expenditure is projected between $160-180 million, to be funded through existing cash reserves and undrawn debt facilities. Distributions are maintained at 12 cents per security, consistent with prior guidance.
Expanding Footprint and Future Earnings Potential
Beyond Australia, DigiCo’s group billed IT capacity is anticipated to reach at least 85MW by July 2026, including 44MW in North America and the Australian contracted capacity. This scale supports an annualised EBITDA run-rate of at least $180 million from July 2026 onwards, positioning DigiCo strongly within the competitive data centre sector.
Strategic Positioning and Government Endorsement
CEO Chris Maher highlighted DigiCo’s unique positioning to serve the high-density AI infrastructure market, where performance, latency, and connectivity are critical. The company’s SYD1 site has achieved ‘certified strategic’ status under the Australian Government’s hosting certification framework, enhancing its appeal to customers and capital partners alike. DigiCo continues to engage with potential capital partners to support its accelerated growth trajectory.
Bottom Line?
DigiCo’s accelerated capacity expansion and upgraded guidance signal strong momentum, but execution and capital partnership outcomes will be key to sustaining growth.
Questions in the middle?
- How will DigiCo manage execution risks associated with the accelerated SYD1 expansion?
- What are the prospects and timelines for securing additional capital partners to support growth?
- How might evolving AI infrastructure demands shape DigiCo’s future development pipeline beyond FY27?