DigiCo Infrastructure REIT (ASX:DGT): Data Centre Results and Sydney Expansion Plans

Aditi Sarkar

20 October 2026 10:47 PM AEDT

DigiCo Infrastructure REIT (ASX:DGT): Data Centre Results and Sydney Expansion Plans

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Highlights

DigiCo Infrastructure REIT (ASX:DGT) invests in and operates data centres in Australia and North America.
First-half FY26 underlying revenue reached AUD 108 million and underlying EBITDA was AUD 57 million.
The group disclosed an 88MW expansion programme at its SYD1 data centre.
A May 2026 announcement detailed a binding US$750 million agreement to sell its Chicago facility.

DigiCo Infrastructure REIT owns, operates and develops data centres serving enterprise, cloud and other digital-infrastructure customers. Its 2026 announcements described contracted capacity, a Sydney expansion and the proposed disposal of its Chicago property. On 20 October 2026, DigiCo Infrastructure REIT (ASX:DGT) closed at AUD 2.00, down 1.96% for the trading day. The closing quotation does not establish the reason for that movement.

Company Business

DigiCo Infrastructure REIT (ASX:DGT) is a stapled entity comprising HMC Digital Infrastructure Ltd and HMC Digital Infrastructure Trust. Its assets support the infrastructure required to house computing equipment, including electricity distribution, cooling systems, connectivity and other facilities. The company identifies Australia and North America as its principal markets. Its official website describes a portfolio spanning operating, development and value-add data centres.

The group operating activity depends on contracted information technology capacity, deployment schedules and the energy available at each site. Contracted capacity is not necessarily equivalent to billed or commissioned capacity. Construction and power provisioning can determine when contracted customer requirements translate into recognised revenue.

Recent Development

In February 2026, DigiCo Infrastructure REIT (ASX:DGT) released results for the six months ended 31 December 2025. It reported 22MW of Australian contract wins, including 2MW in Queensland, and disclosed 85MW of contracted IT capacity across the portfolio. The company stated that existing capacity at its SYD1 facility was fully contracted at that reporting date.

The same disclosure described its SYD1 88MW expansion, for which it said planning approval and power arrangements had been secured. Management outlined progressive development rather than immediate delivery of the entire capacity. The distinction is material: authorised or planned megawatts are not the same as commissioned and revenue-generating megawatts.

In May, the group announced a binding US$750 million agreement to sell its CHI1 Chicago data centre. The release described expected net-debt reduction and a subsequent focus on funding the Sydney development. Its projections for gearing and liquidity were explicitly presented on a pro-forma basis, using assumptions about sale proceeds and foreign exchange. Those figures should not be treated as the actual closing balance sheet at the announcement date.

DigiCo confirmed that its FY26 full-year results for the twelve months ended 30 June 2026 were released on 21 August 2026. The formal annual-results publication supersedes earlier half-year estimates when assessing completed FY26 performance.

Financial Performance and Sector Context

For the first half of FY26, DigiCo Infrastructure REIT (ASX:DGT) reported underlying revenue of AUD 108 million, a 12% increase from the comparable preceding half-year period identified in its disclosure. Underlying EBITDA was AUD 57 million, up 15% on the same basis. These are adjusted reporting measures and should not be labelled statutory earnings.

The February results announcement also recorded a distribution of 6.0 Australian cents per security for the half year. Gearing stood at 35.8%, within the company's stated 35%–45% target range, while cash and undrawn debt facilities totalled AUD 658 million. These balance-sheet figures reflect the reporting-date position and predate the announced Chicago disposal.

Data-centre operators face electricity supply constraints, construction costs, equipment procurement and changing customer needs. Higher-power computing requirements can alter cooling specifications and development expenditure. Investment returns depend on achieving operational readiness and billing contracted customers; the presence of forecast demand alone does not establish future revenue.

The 2026 Chicago sale announcement projected a lower net-debt position once the transaction completed. Until completion, any prospective proceeds, capital redeployment and related financing measures remain dependent on transaction execution and stated conditions.

Risks to Consider

DigiCo Infrastructure REIT (ASX:DGT) faces development-timing risks at SYD1, including contractor availability, commissioning, power-delivery requirements and construction expenditure. Capacity that has been contracted may not be billed immediately. Asset disposal transactions can also be delayed or completed on revised terms.

Debt, refinancing costs and exchange-rate movements can affect a geographically diversified portfolio. Customer concentration, technology upgrades, cybersecurity obligations and reliability requirements remain relevant to data-centre operations. Distributions depend on cash available after operating and capital commitments and are not guaranteed by previous payments.

What to Watch Next

Subsequent company announcements will clarify delivery stages under the Sydney expansion, actual billed capacity and the status of the Chicago asset sale. For DigiCo Infrastructure REIT (ASX:DGT), further reports on liquidity, debt, customer contracts and capital expenditure can help distinguish approved infrastructure plans from delivered operating assets.

The company's investor website lists its annual general meeting for 11 November 2026. Further formal financial reporting and transaction updates will provide a basis for assessing the operational and financing effects of the portfolio changes.

Key Insights

DigiCo's 2026 disclosures centre on underlying half-year earnings, contracted data-centre capacity, the 88MW Sydney development and a proposed Chicago sale. The 21 August full-year reporting announcement is the later reference point for FY26. Project commissioning, cash generation, debt and disposal completion are measurable variables for subsequent monitoring; no future performance follows automatically from the 20 October share-price change.

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