Highlights

• Infratil upgraded FY27 EBITDAF guidance following strong data centre demand.
• CDC Data Centres lifted FY27 EBITDAF guidance to AU$710–AU$750 million.
• AI infrastructure continues to emerge as a key portfolio growth driver.

Infratil Expands AI Infrastructure Growth Strategy

Infratil Limited (ASX: IFT) upgraded its FY27 earnings outlook ahead of its Investor Day, highlighting strong momentum across its portfolio. The announcement comes as IFT shares trade at a current market price (CMP) of AU$11.520, gaining 5.39%.

The company highlighted that global data centre demand has become a significant contributor to portfolio expansion, with data centre investments now accounting for more than half of its NZ$22 billion total asset value. Infratil’s exposure includes CDC Data Centres in Australasia, Kao Data in the United Kingdom and Longroad Energy in the United States, providing exposure across multiple segments of the growing AI infrastructure ecosystem.

CDC Data Centres Drives Earnings Upgrade

CDC Data Centres remains a key contributor to Infratil’s earnings growth. The business increased its FY27 EBITDAF guidance to AU$710 million–AU$750 million, compared with the previous guidance range of AU$680 million–AU$720 million. The improvement reflects additional contracted capacity, operating cost efficiencies and the contribution from managed services.

CDC currently has 350MW of deployed capacity and 1.1GW of contracted capacity, which is expected to deliver AU$2.2 billion of EBITDAF when fully deployed. The growing demand for computing capacity continues to support expansion opportunities as businesses increase investment in AI-driven infrastructure.

Following the CDC guidance upgrade, Infratil increased its FY27 proportionate operational EBITDAF guidance to NZ$1,320 million–NZ$1,420 million from the previous range of NZ$1,300 million–NZ$1,400 million.

Longroad Energy Expands Renewable Infrastructure Platform

Infratil’s US energy platform, Longroad Energy, is positioned to benefit from increasing electricity demand associated with AI development and data centre growth. The company recently acquired a 2.8GW project and is targeting development activity of approximately 2.5GW annually between 2027 and 2029, which could increase its total fleet capacity to 14GW.

Longroad is also evaluating opportunities to utilise its solar farm locations for data centre co-location, supported by a potential 10GW pipeline of digital infrastructure opportunities. This creates additional exposure to the integration of renewable energy generation with growing AI-related power requirements.

Portfolio Positioned for AI Infrastructure Demand

Infratil’s portfolio strategy is increasingly aligned with long-term structural themes, including AI adoption, digital connectivity and energy transition. The company’s infrastructure platforms provide multiple pathways across the AI value chain, including power generation, data centres, connectivity and emerging computing opportunities.

The company’s growth strategy is supported by contracted revenues across major businesses. CDC and Longroad combine established development capabilities with contracted earnings visibility, supporting long-term expansion opportunities while improving revenue certainty.

Balance Sheet Supports Future Expansion

Infratil maintains financial flexibility to support further investment opportunities, backed by its BBB+ credit rating, portfolio optimisation initiatives and ongoing divestment activities. The company continues to focus on strengthening its portfolio while maintaining capacity to pursue future growth opportunities.

The company’s disciplined capital allocation framework remains focused on scaling existing platforms and identifying infrastructure opportunities aligned with long-term returns. Infratil has outlined a target portfolio return range of 11–15% per annum over a rolling 10-year period.

What Could Drive ASX: IFT Shares Ahead?

Infratil’s upgraded earnings outlook highlights the increasing contribution from AI infrastructure, data centres and renewable energy assets. The continued expansion of CDC Data Centres and Longroad Energy provides potential growth opportunities as demand for computing capacity and supporting energy infrastructure accelerates.

With IFT trading at AU$11.520 following a 5.39% gain, investor focus may remain on project execution, additional data centre expansion, Longroad’s development pipeline and the company’s ability to convert infrastructure opportunities into sustainable earnings growth. Infratil’s diversified portfolio and contracted revenue base provide earnings visibility, while future outcomes will depend on successful project delivery, disciplined capital allocation and broader market conditions.

Note- All data presented is based on information available at the time of writing.

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