Infratil’s CDC Secures 555MW Data Centre Deal in Largest Ever Contract
CDC secures 555MW data centre deal in Australia’s largest-ever contract
Infratil‘s CDC Data Centres has signed a 555MW data centre contract with a US-based, investment-grade customer — the largest single contract in Australian history. The 30-year agreement includes renewal options of up to 20 additional years, creating a potential total term of 50 years. The capacity will become operational across FY28 and FY29, delivered across CDC campuses already under development.
The 555MW represents approximately 40% of all operating Australian data centre capacity in 2025. With this contract, CDC’s total contracted capacity now exceeds 1 gigawatt (GW), positioning the company among the largest data centre operators globally. CDC Founder and CEO Greg Boorer described the announcement as a transformational milestone for Australia’s digital infrastructure sector.
Greg Boorer, CDC Founder and CEO
“This is another massive tick of approval for Australia as a global hub for intelligence generation. We have been working hard for nearly twenty years preparing for this moment, and this is only the beginning of an era of prosperity and growth for Australia in this space.”
The contract validates Australasia as a global destination for hyperscale data centre investment, supported by regional stability, competitive build costs and access to renewable energy. It consolidates CDC’s position as the largest data centre provider across Australia and New Zealand.
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What is data centre capacity and why does megawatt scale matter?
Data centre capacity is measured in megawatts (MW), the industry standard metric that refers to IT load capacity — the amount of electrical power available to run servers, storage and networking equipment. This metric allows investors to benchmark operational scale and growth trajectories across global operators.
Reaching 1GW of contracted capacity — equivalent to 1,000MW — is a significant threshold. It positions CDC among the largest data centre operators globally and reflects the scale of computing infrastructure required to support artificial intelligence, cloud services and digital sovereignty initiatives. The transition from hundreds of megawatts to gigawatt-scale capacity represents a step-change in both earnings potential and infrastructure footprint.
Long-term contracts of 30+ years provide earnings visibility and reduce demand risk for infrastructure investors. These agreements lock in revenue streams that extend across decades, underpinned by investment-grade customers with stable, predictable demand profiles. For a capital-intensive business model like data centres, long-dated contracts de-risk the substantial upfront capital expenditure required to construct facilities.
The 555MW contract alone equates to approximately 40% of all operating Australian data centre capacity in 2025, illustrating the transformational scale of demand CDC has secured. As hyperscale customers expand their computing infrastructure, operators with proven delivery capability, extensive development pipelines and robust balance sheets are positioned to capture disproportionate market share.
Financial outlook strengthens as EBITDAF set to exceed A$1 billion in FY28
CDC’s FY27 EBITDAF guidance remains unchanged at A$680 million to A$720 million, as the newly contracted capacity will not contribute until FY28. EBITDAF is expected to exceed A$1 billion in FY28 as contracted capacity comes online, subject to timing of build delivery and customer activation. When fully deployed, CDC’s 1GW of contracted capacity would deliver annualised EBITDAF of approximately A$2 billion.
EBITDAF includes the straight-lining of lease revenue for contracts with fixed indexation over the term of the arrangement, which smooths revenue recognition and provides a clearer view of underlying earnings trajectory. The forecast 75% increase in EBITDAF from FY27 to FY28 demonstrates the operating leverage inherent in CDC’s contracted capacity model — capital deployed now generates predictable, long-dated cash flows that scale rapidly as facilities become operational.
FY27 capital expenditure is expected to be between A$3.8 billion and A$4.2 billion (excluding land), reflecting accelerated construction activity to meet market demand. This represents a significant step-up from FY26 capex of A$1.9 billion to A$2.2 billion, driven by the delivery timeline for the 555MW contract and other contracted capacity scheduled to come online through FY28 and FY29.
| Financial Year | Contracted Capacity (MW) |
|---|---|
| FY26 | ~200MW |
| FY27 | ~220MW |
| FY28 | ~200MW |
| FY29 | ~555MW |
| Total | 1GW+ |
The earnings trajectory demonstrates CDC’s ability to convert development pipeline into revenue-generating infrastructure at scale. The company’s demand-driven, modular development model reduces execution and utilisation risk by aligning capital deployment with contracted customer commitments.
Funding secured with investment-grade credit rating
Balance sheet supports growth without further shareholder equity
The new contract is within CDC’s current growth plan and does not require further shareholder equity. In February 2026, CDC shareholders contributed A$500 million to support the acceleration of CDC’s construction programme. Infratil’s share was A$250 million, based on its 49.72% ownership.
CDC had A$3.9 billion in cash and undrawn bank borrowings at 31 March 2026, providing substantial liquidity to fund the development programme. On 21 April 2026, Moody’s Ratings assigned CDC’s Australian business a Baa2 (Stable) credit rating, the first public credit rating for the business. This opens access to deep and liquid global debt and hybrid markets, alongside the funding markets CDC has accessed previously.
Moody’s acknowledged CDC Australia’s strengths, including robust demand and predictability of earnings growth, with 90%+ of CDC’s revenue derived from investment-grade rated customers. The weighted average lease expiry of 28.4 years (including options) provides exceptional earnings visibility. The investment-grade rating de-risks CDC’s funding requirements and reduces the cost of capital for future expansion, supporting mid-teens plus equity returns on deployed capital.
Strategic positioning and development pipeline
2.9GW capacity pipeline extends to 2034
CDC has 572MW currently under construction. The development pipeline includes 1.6GW of additional capacity through to 2034, with total pipeline capacity of 2.9GW (including operating and under-construction facilities). Densification and technology evolution may support further capacity growth as customer requirements and site opportunities evolve.
CDC operates across Canberra, Sydney, Melbourne, Perth and Auckland, with all facilities holding “Certified Strategic” accreditation — the only major operator in the region with this designation across its entire portfolio. This positions CDC as a preferred partner for Federal Government agencies, national critical infrastructure organisations and hyperscale cloud providers.
Built capacity by region (as at March 2026):
- Canberra: 73MW
- Sydney: 921MW
- Melbourne: 428MW
- Perth: 101MW
- Auckland: 126MW
- Australia Expansion: 14MW
- Total: 1,663MW (pipeline capacity)
The company’s development strategy focuses on efficient capital deployment aligned to revenue generation. Capital expenditure per ICT MW varies by site, with the current average in the mid-teens (millions, excluding land). CDC’s design supports increased computing density and liquid cooling, with minimal water use providing a differentiator for site development in water-constrained environments.
Jason Boyes, Infratil CEO
“Today’s announcement underscores Australasia’s opportunity to attract global computing capacity, supported by regional stability, competitive build costs and access to renewable energy.”
CDC’s competitive advantages include superior access to funding enabled by its investment-grade credit rating, contracted earnings visibility underpinned by a premium customer base, scale and efficient development economics, and technology and sustainability advantages that support attractive returns. The company continues to see mid-teens plus equity returns from CDC, with ongoing discussions with other strategic large-scale customers.
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Infratil’s stake and portfolio context
Infratil holds a 49.7% shareholding in CDC Group Holdings Pty Ltd, the ultimate parent company of CDC. Other shareholders include the Future Fund (34.5%), Commonwealth Superannuation Corporation (12.0%), and CDC management (3.7%).
Infratil’s portfolio divestment programme has achieved NZ$600 million+ in proceeds, tracking toward a NZ$1 billion target. This provides capital optionality for future growth opportunities across the portfolio. Infratil maintains an investment-grade credit rating of BBB+ (Stable outlook), reflecting a strong liquidity position and capacity to support further growth if required.
As at 31 December 2025, Infratil’s portfolio investments totalled $8,036 million, with CDC Data Centres valued at $3,710 million — representing approximately 46% of total portfolio value. The contract reinforces CDC as the dominant earnings and value driver within Infratil’s portfolio, with the pathway to A$2 billion of annualised EBITDAF when contracted capacity is fully deployed representing a transformational scale-up for the business.
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