DigiCo Infrastructure REIT (ASX:DGT) is selling its Chicago and Los Angeles data centres to fund a single Sydney campus. Goodman Group (ASX:GMG) is building data centres in eight cities at once, from Tokyo to Madrid. Both are betting on the same Demand from cloud and Artificial Intelligence (AI) computing, but at very different scales and with very different balance sheets.

That is why the pair is worth comparing. DigiCo offers concentrated exposure to operating data centres, while Goodman's exposure runs through a development pipeline funded largely with partners' capital. Each approach carries its own risks.

DigiCo's pivot back to Sydney

DigiCo is a stapled security, combining shares and trust units, managed externally by subsidiaries of HMC Capital. Its 2026 annual report, lodged on 24 September for the year to 30 June 2026, lists 12 data centres, seven in Australia and five in North America, with 85 megawatts (MW) of contracted IT capacity and an independent valuation of $4.1 billion.

On 10 September the trust completed the sale of its Chicago facility. Together with the pending sale of its two Los Angeles assets, still in final due diligence, the proceeds are intended to fully fund its 88MW SYD1 project in Sydney. On a pro forma basis, DigiCo expects net Debt to fall from $1.6 billion to about $0.5 billion and gearing to 18 per cent.

The Annual Report says a 20MW upgrade at SYD1 was completed on time and on budget, with a further 52MW expansion planned in phases over FY27 and FY28. The first 10MW Tranche is targeted to be income-producing by the end of FY27.

What DigiCo earned in FY26

Revenue was A$205.8 million, up from $105.2 million in the prior reporting period, and underlying EBITDA (earnings before interest, tax, Depreciation and amortisation) was $126.6 million. Funds from operations (FFO), the REIT sector's measure of recurring earnings, reached 16.4 cents per security, and distributions were 12.0 cents.

The statutory result was a loss of $100.8 million after tax, reflecting items outside FFO. Net tangible Assets (NTA) were $3.50 per security, while an adjusted net asset value that reflects independent valuations was $4.47.

FY27 guidance is for underlying EBITDA of $120 million to $125 million, lower than FY26 as US assets leave the portfolio, but for distributions to rise 25 per cent to 15.0 cents per security.

Goodman's data centre build-out

Goodman is an internally managed stapled group that develops, owns and manages property with Capital partners. Its FY26 results, released on 19 August 2026, showed operating profit of $2.67 billion and development work in progress (WIP) of $19.7 billion, which the group said was driven by data centres.

Tamim Asset Management's review of the result reported that data centres made up 78 per cent of WIP, up from 57 per cent a year earlier. It also reported a power bank of 6.4 gigawatts across 16 cities, comprising 3.6 gigawatts secured and 2.8 gigawatts in advanced procurement, with about 90 per cent of data centre projects held in partnerships.

On the results call, management said about 500MW was under construction across 10 projects in eight markets, including Sydney. A 50MW phase in Tokyo has a 20-year Lease with a global hyperscaler, meaning one of the largest cloud providers, and is due early 2028. Management also said its Los Angeles project is being developed with partner DataBank, an interesting contrast with DigiCo's exit from that city. Greg Goodman said the group had decided to include full mechanical and electrical fit-out on all but one building.

Unlike DigiCo, Goodman's data centre exposure sits alongside its established logistics business, which still anchors much of its portfolio.

Our comparison: scale and funding

By our calculation, 78 per cent of Goodman's $19.7 billion WIP is about $15.4 billion of data centre projects, roughly 3.7 times DigiCo's entire $4.1 billion portfolio. Goodman's 500MW under construction is almost six times DigiCo's 85MW of contracted capacity.

Funding models differ just as sharply. DigiCo is recycling its own assets to fund one campus, with no new Equity required for SYD1, according to the annual report. Goodman shares development risk with partners, which reduces its balance-sheet exposure but also means partners share the returns.

Payout policy adds another contrast. DigiCo's 12.0 cent distribution equalled about 73 per cent of FFO (12.0 ÷ 16.4 cents) and about 94 per cent of adjusted FFO of 12.8 cents, a narrower measure. FY27's 15.0 cent distribution guidance equals about 91 per cent of FY26 FFO per security, although FY27 FFO will reflect a smaller portfolio after the US sales and any new Sydney capacity brought online.

Where the comparison has limits

DigiCo is an income vehicle whose Earnings come mainly from existing facilities, while Goodman's data centre earnings largely arrive as development profits when projects are completed, leased or valued. Their figures are therefore not like-for-like.

DigiCo also pays fees to its external manager. The annual report shows $22.2 million of base fees to the Investment manager and $29.0 million to the asset manager, both HMC Capital subsidiaries, taken entirely in securities. Goodman, by contrast, earns fees as a manager.

Risks and dates to watch

DigiCo's customer base includes more than 550 customers, mainly in Australia, but hyperscalers contribute 52 per cent of its sector mix and North America relies on two major customers. Around 91 per cent of its contracts carry fixed escalations. Its weighted average cost of debt was 6.0 per cent, with debt fully hedged or fixed, and delivering SYD1 on time is central to its FY27 plan.

For Goodman, Tamim noted that about half the pipeline was not yet leased. Management also said planning approvals are becoming harder in many markets, which can delay projects and raise costs. Securityholders have requisitioned a resolution asking the board to disclose how it manages community and environmental risks of data centres near homes and schools, for its 19 November 2026 annual meeting.

DigiCo's Annual General Meeting is on 11 November 2026. Indicators to watch include completion of the Los Angeles sale, SYD1 leasing and Goodman's further data centre lease signings. Both are S&P/ASX 300 members; DigiCo is held in the iShares Small Ordinaries ETF, and neither was affected by the September 2026 rebalance.