Source: Kapitales Research

Highlights:

• Infratil shares jumped more than 12% after CDC signed a landmark 555MW contract
• The agreement is being described as Australia’s largest-ever data centre deal
• Rising demand for AI, cloud computing, and sovereign data storage continues to fuel sector growth

Infratil Limited (ASX: IFT) surged more than 12% on Wednesday after its data centre business, CDC, secured a massive long-term contract that significantly strengthened the company’s growth outlook.

The sharp rally pushed the infrastructure investment company’s shares to around $11.83 in afternoon trade, extending its strong gains for 2026 and placing it among the top-performing large-cap stocks on the ASX.

Record Data Centre Agreement Drives Rally

Investor enthusiasm followed the announcement that CDC had entered into a 555-megawatt long-term agreement with a major US investment-grade customer. The contract, which includes a 30-year term with options for extension, is being viewed as a transformational milestone for both CDC and Infratil.

The deal is regarded as the largest data centre agreement ever signed in Australia, reflecting the rapid expansion of demand for digital infrastructure linked to artificial intelligence, cloud services, and secure data storage. Following the agreement, CDC’s total contracted capacity has now exceeded one gigawatt, more than doubling its previous contracted base. The scale of the contract also highlights the company’s growing influence in the Australian hyperscale data centre market.

AI and Cloud Demand Continue to Accelerate

CDC has become one of Infratil’s most valuable assets as governments and technology companies increase spending on digital infrastructure. The business develops and operates highly secure data centres that support large-scale computing, cloud platforms, and mission-critical storage systems. The latest agreement underscores how rapidly AI adoption is reshaping infrastructure demand worldwide. Large technology operators are increasingly seeking long-duration access to power-intensive facilities capable of supporting next-generation computing workloads.

Importantly, the newly contracted capacity is already incorporated into CDC’s existing development pipeline and is expected to become operational during FY28 and FY29. This reduces execution risk and limits the need for major changes to current construction plans.

Financial Strength Positions CDC for Further Growth

CDC continues to maintain a solid financial footing, with roughly A$3.9 billion in cash reserves and unused financing facilities available as of March 31. Earlier this year, shareholders, including Infratil, contributed an additional AU$500 million in equity support. The company reaffirmed its FY27 EBITDAF outlook of A$680 million to A$720 million and expects FY28 EBITDAF to surpass the A$1 billion mark. Its broader development pipeline now stretches to around 1.6GW through to 2034. Investor confidence has also been supported by Moody’s assigning CDC’s Australian operations a Baa2 stable credit rating, improving its access to international funding markets.

Why the Market Reacted So Strongly

The market’s reaction reflects more than just the size of the contract. Investors appear to be focusing on the long-term revenue visibility, strategic positioning, and exposure to structural growth themes tied to AI and cloud infrastructure. For Infratil, the deal further strengthens CDC as a core earnings driver and reinforces the company’s position within one of the fastest-growing segments of the global infrastructure market.

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

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