DigiCo Infrastructure REIT (ASX:DGT) Expands Sydney Data Centre Commitments

Aditi Sarkar

21 October 2026 05:10 PM AEDT

DigiCo Infrastructure REIT (ASX:DGT) Expands Sydney Data Centre Commitments

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Highlights

DigiCo executed a 15-year contract covering 71MW at its Sydney facility.
The SYD1 site is now contracted across its planned 88MW capacity.
FY26 underlying revenue totalled AUD 239 million.
FY26 underlying EBITDA reached AUD 127 million.
FY27 underlying EBITDA guidance remains AUD 120–125 million.

DigiCo Infrastructure REIT owns, operates and develops data centres, with a focus on established facilities and expansion opportunities. The group has recently secured a substantial Sydney customer contract and outlined further investment in Australian capacity. On 21 October 2026, DigiCo Infrastructure REIT (ASX:DGT) traded at AUD 1.923, down 3.88% during the trading session.

Company Business

DigiCo Infrastructure REIT (ASX:DGT) has concentrated its development strategy on Australian facilities following a decision to recycle capital from selected United States assets. Sydney is central to the programme, while its Adelaide facility presents another potential expansion opportunity.

Recent Announcements

On 15 October 2026, DigiCo announced a 15-year agreement for 71 megawatts of capacity at its SYD1 Sydney data centre with a global technology company. The agreement includes reassignment of 20MW already contracted to another customer. The remaining 17MW at SYD1 is contracted to colocation users, bringing the site to 88MW of committed capacity.

DigiCo Infrastructure REIT (ASX:DGT) also executed a fixed-price design-and-construction contract for the next 52MW of Sydney capacity. The initial 10MW tranche is expected to become operational and earn income late in the fourth quarter of FY27, with the remainder scheduled progressively through FY28.

Financial Position

For FY26, the group reported underlying revenue of AUD 239 million and underlying EBITDA of AUD 127 million. Adjusted funds from operations were AUD 71 million. Distributions totalled 12.0 Australian cents per security, in line with its guidance.

At 30 June 2026, gearing was 39%, within the company’s target band of 35–45%. DigiCo Infrastructure REIT (ASX:DGT) reported available liquidity of AUD 706 million at that date. The company indicated liquidity could increase to approximately AUD 1.2 billion on a pro forma basis following contemplated US asset sales; pro forma measures are conditional estimates.

DigiCo completed the sale of its Chicago data centre in September 2026. A separate Los Angeles disposal remained subject to due diligence at the time of the September announcement. The timing and net proceeds from disposals are important to assessing debt reduction and capital available for Australian construction.

Development Pipeline and Outlook

The expansion programme includes the 52MW Sydney addition and a proposed 15MW increase at ADL1 in Adelaide. The company has described a potential annualised Australian platform stabilised EBITDA level of approximately AUD 250 million once its stated occupancy and billing conditions are met. This is a long-term management estimate, not current earnings.

FY27 underlying EBITDA guidance was reaffirmed in October at AUD 120–125 million, including two months of contribution from the Chicago asset before its sale. Expected FY27 capital spending is AUD 300–500 million, concentrated in the second half. The company earlier indicated a targeted FY27 distribution of 15.0 cents per security.

Risks and Monitoring Points

DigiCo Infrastructure REIT (ASX:DGT) is exposed to construction costs, grid connection, customer concentration, financing expenses and commissioning delays. A long-dated customer agreement does not remove the technical requirements needed to bring contracted capacity into service. Delays could affect the timing of rental revenue and expected investment returns.

Investors can monitor the first Sydney expansion tranche, subsequent construction progress, remaining US disposals and periodic reporting of debt and liquidity. The REIT has scheduled its annual general meeting for 11 November 2026.

Key Insights

The October Sydney agreement materially extends contracted lease duration and commits the planned capacity at SYD1. FY26 results establish the recent earnings base, while the construction timetable and financing position are central to assessing future operations. Contracted megawatts and megawatts actually online should be tracked separately.

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