Infratil’s CDC Stake Jumps $500M as Data Centre Pipeline Hits 2,906MW
Infratil’s CDC stake climbs A$500 million as data centre demand accelerates
Infratil Limited has reported its 49.72% stake in CDC Data Centres is now valued at A$7,454 million, representing a quarterly increase of A$500 million or 7.2% for the three months ended 31 March 2026. Excluding the impact of a recent equity raise, the Infratil CDC valuation increase delivered 3.5% growth on a like-for-like basis, demonstrating continued organic value creation in the company’s largest portfolio holding.
CDC’s total valuation increased by A$1.0 billion from December 2025, reaching A$15.0 billion at the mid-point of the assessed valuation range of A$14.1 billion to A$16.0 billion. The increase reflects both operational progress across CDC’s Australian and New Zealand data centre portfolio and strategic capital deployment, with Infratil contributing A$250 million to support acceleration of the development pipeline.
The quarterly movement underscores the continued strength of data centre fundamentals, with capacity expansion and enhanced funding arrangements driving value growth across CDC’s operating assets and development pipeline.
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What is driving CDC’s valuation growth?
Four key factors contributed to the A$1.0 billion increase in CDC’s enterprise value during the quarter:
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Equity raise completion: A A$500 million capital injection, with Infratil contributing A$250 million alongside other major shareholders to fund pipeline acceleration.
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Build programme expansion: The addition of 156MW to CDC’s development pipeline, largely driven by design and densification updates at the Marsden Park campus in Sydney.
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Debt funding diversification: Completion of a A$2.7 billion bank debt facility in March 2026, representing a net increase in debt capacity of A$2.1 billion and supported by existing and new lenders.
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Interest rate adjustments: These positive cash flow movements were partly offset by an upward shift in the forward yield curve, resulting in higher assumed interest costs over the forecast period and an increase in the cost of equity.
The valuation movement demonstrates that growth is being driven by tangible capacity expansion and a strengthened funding position, rather than simply market multiple expansion. The bank debt facility, in particular, provides CDC with enhanced financial flexibility to execute its development pipeline.
Understanding data centre valuations
CDC’s valuation is determined using a Discounted Cash Flow (DCF) methodology based on Free Cash Flow to Equity (FCFE). This approach projects the future cash flows available to equity holders after accounting for operating costs, capital expenditure, and debt obligations, then discounts them back to present value.
The cost of equity represents the return investors require to compensate for the risk of holding CDC’s shares. This rate increased to 11.84% from 11.64% in December 2025, primarily reflecting higher forecast gearing as CDC accelerates its debt-funded construction programme. The blended rate accounts for the spectrum of risk across CDC’s portfolio, from operating data centres with contracted revenues through to development projects without secured customers.
The valuation assumes CDC continues development through 2040, with a terminal year of 2055. Importantly, no development beyond 2040 is factored into the current valuation, meaning the assessed value captures only the existing pipeline. This conservative approach creates potential upside if CDC secures additional development opportunities in later years.
Long-dated cash flows matter significantly for infrastructure assets like data centres, which typically operate under long-term contracts with predictable revenue streams and extended operational lifespans.
CDC’s development pipeline continues to expand
Operating capacity increased by 103MW during the quarter, reflecting the ongoing buildout of CDC’s Eastern Creek campus. Construction activity accelerated across multiple sites, with over 100MW commenced at the Laverton campus in Melbourne and over 200MW at the Marsden Park campus in Sydney.
The total capacity pipeline increased by 156MW from December 2025, reaching 2,906MW across operating, under construction, and future build phases.
| Status | March 2026 (MW) | December 2025 (MW) | Change |
|---|---|---|---|
| Operating capacity | 671 | 568 | +103 |
| Under construction | 572 | 363 | +209 |
| Future build | 1,663 | 1,820 | -157 |
| Total pipeline | 2,906 | 2,750 | +156 |
The reduction in future build capacity reflects the natural progression of projects into the construction phase, demonstrating CDC’s ability to convert planned capacity into active development. The 209MW increase in capacity under construction signals accelerating near-term revenue visibility as these facilities move towards operational status.
Design and densification initiatives may result in further capacity increases as customer requirements and site opportunities continue to evolve, providing additional upside potential beyond the current pipeline assumptions.
Valuation methodology and assumptions
The independent valuation is anchored by a transparent set of assumptions that allow investors to assess the reasonableness of CDC’s assessed value. The enterprise value of A$20.0 billion less net debt of A$5.0 billion yields the equity value of A$15.0 billion.
Key valuation inputs include:
- Risk free rate: 4.00%
- Asset beta: 0.575
- Cost of equity: 11.84% (blended rate)
- Long-term EBITDA margin: 83%
- Terminal year: 2055
The 83% long-term EBITDA margin reflects the highly cash-generative nature of data centre operations once facilities reach maturity. This margin assumption is consistent with comparable infrastructure assets that benefit from contracted revenues and relatively low ongoing operating costs once capital expenditure is complete.
The asset beta of 0.575 positions CDC within the typical range for infrastructure assets, acknowledging both the defensive characteristics of contracted data centre operations and the development risk associated with the construction pipeline.
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What this means for Infratil shareholders
CDC represents a substantial portion of Infratil’s net asset value, with the A$7,454 million stake valuation reflecting the quality and scale of this infrastructure holding. The A$250 million equity contribution demonstrates Infratil’s confidence in CDC’s growth trajectory and willingness to deploy capital alongside other major shareholders to support pipeline acceleration.
The quarterly valuation increase of 7.2% (or 3.5% on a like-for-like basis) continues the pattern of consistent value creation from CDC, which has emerged as one of the leading data centre platforms in the Asia-Pacific region. With 103MW of operating capacity added during the quarter and 572MW now under construction, the pipeline demonstrates visible growth runway.
The strengthened funding position, including the A$2.7 billion bank debt facility completed in March 2026, provides CDC with the financial capacity to execute its development programme without requiring frequent equity injections. This positions the asset to continue generating value for Infratil shareholders through a combination of operational growth from newly commissioned facilities and potential further expansion of the development pipeline beyond current assumptions.
For investors focused on infrastructure exposure with embedded growth optionality, CDC’s combination of operating cash flows, construction momentum, and conservative valuation methodology presents a compelling element of Infratil’s diversified portfolio.
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