CDC Data Centres secures record 555-megawatt contract in Australia

CDC Data Centres has secured the largest data centre contract in Australian history, a 555-megawatt (MW) agreement with a high-end United States investment grade customer. The landmark deal, announced on May 6, 2026, represents a significant milestone for the organisation and its major shareholder, the NZX-listed infrastructure investor Infratil.

The contract spans a 30-year term and includes renewal options that could extend the agreement for up to an additional 20 years. This long-term commitment provides substantial cashflow visibility for CDC Data Centres, which is 49.7% owned by Infratil. Other significant shareholders in the data centre operator include the Future Fund and the Commonwealth Superannuation Corporation.

Capacity and Operational Timeline

The 555MW of new capacity will be delivered across CDC’s existing campuses and is scheduled to become operational during the 2028 and 2029 financial years (FY28 and FY29). To put the scale of this agreement into perspective, the 555MW capacity represents approximately 40% of the total operating capacity of all Australian data centres in 2025.

This contract brings CDC’s total contracted capacity to over one gigawatt (1GW+), a threshold that underscores the rapid expansion of digital infrastructure in the Australasian region. As of March 2026, CDC’s operating capacity stood at 671MW. The addition of this new contract significantly accelerates the company's growth trajectory, positioning it as a primary hub for hyperscale and AI-driven workloads.

Financial Projections and Capital Expenditure

The financial implications of the 555MW contract are extensive. CDC’s earnings before interest, tax, depreciation, amortisation, and fair value adjustments (EBITDAF) are now projected to exceed A$1 billion in FY28. Once the full 1GW+ of contracted capacity is deployed, the annualised EBITDAF is expected to reach A$2 billion.

To support this growth, CDC has outlined a substantial capital expenditure programme. For the 2027 financial year (FY27), capital expenditure is estimated to be between A$3.8 billion and A$4.2 billion, excluding land acquisitions. This investment is focused on the timely delivery of capacity across the company's existing developments to meet the operational targets of FY28 and FY29.

Despite the scale of the investment, Infratil has confirmed that no further shareholder equity will be required to fund this specific contract. The development will be financed through CDC’s existing cash reserves and debt facilities. As of March 2026, the company held A$3.9 billion in cash and undrawn facilities. This follows a prior equity contribution in February, where shareholders, including Infratil, provided A$500 million to accelerate the construction programme.

Strategic Market Position

The identity of the customer remains unnamed, though it is described as a high-end United States entity with an investment grade credit rating. Such ratings, typically provided by agencies like Moody's and S&P, indicate a high level of creditworthiness and financial stability, further securing the long-term value of the 30-year agreement.

The scale of this deal highlights the growing importance of the Australasian region as a secure and stable destination for global computing capacity. The demand for large-scale data processing and storage is being driven by the global shift towards intelligence generation and the increasing requirements of hyperscale cloud providers.