DigiCo Reports $99M EBITDA, Eyes 85MW Capacity by Mid-2026

A Strong Debut Year

DigiCo Infrastructure REIT marked its first year as a listed entity with robust operational and financial results. The company exceeded its prospectus guidance by delivering an underlying EBITDA of $99 million, slightly above the forecasted $97 million, while maintaining distributions at 10.9 cents per security. This performance sets a solid foundation for DigiCo’s ambitions in the rapidly evolving digital infrastructure sector.

Capitalising on AI-Driven Demand

The surge in artificial intelligence adoption is driving unprecedented demand for data centre capacity, particularly in DigiCo’s core markets of Australia and the United States. Australia’s emergence as a hub for AI deployments, supported by access to cutting-edge technology and reliable infrastructure, complements DigiCo’s strategic positioning. The company’s portfolio, spanning 13 data centres with a planned IT capacity of 232MW, is well placed to serve hyperscale cloud providers, enterprise clients, and government agencies.

Accelerated Capacity Expansion

DigiCo is aggressively expanding its footprint. The flagship SYD1 facility in Sydney is undergoing an accelerated densification and optimisation program, now targeting the delivery of 88MW of capacity within three years; significantly faster than initially planned. The first tranche has been upsized from 9MW to 20MW, with delivery expected by mid-2026. In the US, developments at Los Angeles sites LAX1 and LAX2 are progressing, with LAX1 on track for council approval in Q2 FY26 and construction slated to begin in early FY27.

Financial Strength and Strategic Partnerships

Maintaining a strong balance sheet with $740 million in liquidity and gearing at 35%, DigiCo is well positioned to fund its growth pipeline. The company is actively pursuing capital partnerships to recycle equity and unlock value, including potential minority sell-downs of its Australian colocation portfolio and the Los Angeles developments. These initiatives aim to enhance financial flexibility and support value-accretive brownfield and greenfield projects.

Outlook and Market Positioning

Looking ahead, DigiCo expects FY26 underlying EBITDA to range between $120 million and $125 million, driven by capacity expansions and contracted rental ramps, particularly from the Chicago 1 asset. Distributions are forecasted at 12 cents per security, aligning with the company’s payout policy. Despite these positive fundamentals, the share price has underperformed, a challenge management acknowledges and aims to address through continued operational execution and capital management.

Sustainability remains a core pillar, with DigiCo preparing its first climate disclosures for FY26 and committing to carbon-neutral pathways. The company’s integrated portfolio and diversified customer base position it to capture long-term growth in sovereign digital infrastructure amid the accelerating AI and cloud computing wave.