Infratil's CDC lands Australia's largest-ever data centre contract

A 555 megawatt, 30-year deal with an unnamed US hyperscaler has transformed Infratil's Canberra Data Centres from a promising AI infrastructure bet into a business fund managers now describe as a company-transforming, near A$2 billion EBITDA run-rate asset.

30 Jun 2026 · 6 min read

Fund managers have spent the past year building conviction in Infratil Ltd (ASX: IFT) almost entirely on the strength of its roughly 50% stake in Canberra Data Centres (CDC), one of Australia's largest data centre operators. Quest Asset Partners explained the original thesis in July 2025, describing Infratil as a portfolio of assets managed by a successful New Zealand-based team, but with CDC as the primary focus given its dominance in government and essential infrastructure applications amid what the fund called an AI revolution already well under way.

CDC has demonstrated they can contract, fund and deliver DCs while staying abreast of technological advances and client requirements. Other listed ASX alternatives are priced materially above the IFT implied valuation.

Quest Asset Partners, Monthly Report, July 2025

Australia's largest-ever data centre contract

The defining moment for the thesis arrived in May 2026. Pendal Group reported that CDC announced a 555MW contract win with a major US hyperscaler, taking total contracted capacity above 1GW, a 10-year deal with 20 years of options becoming operational over FY28 and FY29. Capex associated with the win, estimated at A$8-8.5 billion, will be fully funded via existing liquidity and future debt, supported by an investment grade rating the company recently received, with CDC's contracted EBITDA now standing at approximately A$2 billion. SG Hiscock & Company described the deal as "the largest data centre contract in Australian history," expected to drive CDC earnings from around A$400 million today to over A$1 billion by FY28.

This is genuinely a company transforming deal. However, it also showcases the seismic shift taking place in AI demand and how Australia is being seen as a strategic hub for inference-based data centres given its sovereign and regional stability.

SG Hiscock & Company, Monthly Report, May 2026

An exceptional operator behind the deal

QVG Capital, attending a conference presentation from CDC CEO Greg Boorer just two days after the 555MW deal was announced, framed the win as evidence of operator quality as much as market timing. The fund said Boorer's presentation made clear he "understands what he's talking about on a financial and technical level," and that seeing the scale of what is coming for AI infrastructure reinforced its conviction that CDC "is the real deal." Smallco Investment Manager added further detail on Infratil's broader asset base in June 2026, noting digital infrastructure is now the company's largest investment category, alongside US renewable energy platform Longroad Energy, New Zealand telecommunications provider One NZ, and Wellington Airport.

Guidance upgrades and emerging optionality

The FY26 result reinforced the strength of the underlying business beyond the headline contract. SG Hiscock & Company reported group earnings up 11% with FY27 guidance implying approximately 21% growth, alongside management flagging a further NZ$1 billion of divestments to sharpen portfolio focus, a capital discipline signal the fund viewed positively. The fund also highlighted an emerging optionality angle in Longroad Energy, which is actively exploring data centre opportunities to monetise excess energised land adjacent to its US renewables portfolio. Pendal Group's June 2026 coverage, however, flagged that Longroad's own cost growth to support an accelerated project pipeline pushed FY27 guidance around 9% below consensus, even as it noted this supports outer-year upgrades.

What managers are watching next

With contracted capacity now above 1GW and management signalling the pipeline remains robust with further contract wins expected, the catalysts fund managers are watching most closely are additional hyperscaler deal announcements of a similar scale, the pace of construction across the newly contracted 555MW facility through FY28 and FY29, and how Longroad Energy's own emerging data centre optionality develops alongside its core US renewables business.