CDC Data Centres has landed Australia's largest-ever data centre contract, a 555MW deal with a US investment grade client that pushes its total contracted capacity beyond 1GW and is set to boost EBITDAF past A$1 billion in FY28.
- 555MW contract spans 30 years with renewal options
- Total contracted capacity exceeds 1GW, largest in Australasia
- EBITDAF expected to surpass A$1 billion in FY28
- FY27 EBITDAF guidance unchanged despite contract size
- Robust balance sheet supported by Moody’s Baa2 rating
Record-Breaking Contract Signals Data Centre Surge
CDC Data Centres (CDC) has secured a landmark 555 megawatt (MW) data centre contract with a US high-end investment grade customer, marking the largest deal in Australia’s history. This 30-year agreement, with renewal options extending up to 20 years, vaults CDC’s total contracted capacity beyond 1 gigawatt (GW), a scale that represents roughly 40% of Australia’s total operating data centre capacity anticipated in 2025.
Set to be delivered across CDC campuses under development and operational by FY28 and FY29, the contract underlines Australasia’s growing prominence as a global hub for secure, large-scale intelligence infrastructure. CDC Founder and CEO Greg Boorer described it as a "massive tick of approval for Australia as a global hub for intelligence generation," highlighting nearly two decades of groundwork culminating in this milestone.
Financial Impact and Growth Trajectory
The new contract is expected to push CDC’s EBITDAF (earnings before interest, tax, depreciation, amortisation, and fair value adjustments) beyond A$1 billion in FY28, with annualised EBITDAF potentially reaching around A$2 billion once the full 1GW contracted capacity is deployed. Despite this surge, CDC’s FY27 EBITDAF guidance remains steady at A$680 million to A$720 million, reflecting the timing lag between contract signing and operational capacity coming online.
To support this rapid expansion, CDC forecasts capital expenditure between A$3.8 billion and A$4.2 billion for FY27 (excluding land costs), a significant increase from FY26’s A$1.9 billion to A$2.2 billion. This capex will fund construction across multiple Australian cities including Sydney, Melbourne, Canberra, Perth, and Auckland in New Zealand, where CDC continues to develop a substantial pipeline of 1.6GW of future capacity through to 2034.
Robust Balance Sheet and Investment Grade Rating
CDC’s balance sheet strength was recently boosted by Moody’s assignment of a Baa2 (stable outlook) credit rating to its Australian business, unlocking access to deeper global debt and hybrid capital markets. This rating complements CDC’s existing bank and US private placement funding and supports its ability to finance large-scale developments without immediate shareholder equity injections. Infratil, CDC’s largest shareholder with a 49.7% stake, contributed A$250 million of the A$500 million equity raised earlier this year to accelerate construction efforts.
This financial robustness is critical as CDC navigates a market with surging demand for hyperscale and government-grade data centre infrastructure, driven by AI, cloud computing, and sovereign digital infrastructure needs. The company’s modular, demand-driven development model, combined with technology and sustainability advantages such as closed-loop water cooling, positions it well to meet evolving customer requirements efficiently.
Market Position and Future Prospects
CDC’s contract book now exceeds 1GW, consolidating its position as the largest data centre provider in Australia and New Zealand. The company’s customer base is heavily weighted towards investment-grade clients, with over 90% of revenue derived from such customers and a weighted average lease expiry of 28.4 years, providing strong earnings visibility.
With ongoing discussions underway with other strategic large-scale customers and a pipeline that could support further densification, CDC appears poised to capture a significant share of the projected global data centre demand growth, which is forecast to more than double from 103GW in 2024 to over 250GW by 2030. The company’s recent Moody’s Baa2 rating and the prior FY27 EBITDAF guidance upgrade reflect the market’s confidence in CDC’s growth strategy and execution capabilities.
Bottom Line?
CDC’s record-breaking contract cements Australasia’s data centre credentials but hinges on timely delivery and activation over the next three years.
Questions in the middle?
- How will CDC manage construction and activation risks to meet FY28 EBITDAF targets?
- What impact could evolving technology and sustainability demands have on CDC’s development pipeline?
- Will CDC secure additional large-scale contracts to further extend its market dominance?