DigiCo REIT targets strategic capital partnerships and expansion pipeline

SYDNEY: DigiCo Infrastructure REIT (ASX: DGT), a diversified owner, operator, and developer of data centres, is exploring opportunities to accelerate growth through capital partnerships.

The company aims to introduce capital partners to its U.S. operations and Australian colocation assets, targeting leveraged project IRRs of 8-12% and 15-30%, respectively.

This strategy is expected to provide additional funding for development projects and enhance shareholder value.

DigiCo Infrastructure REIT boasts a robust portfolio of 13 data centres across key Australian and North American markets. The portfolio includes 238 MW of planned IT capacity, with 76 MW currently installed and a 162 MW development pipeline.

The company’s assets are strategically located to capitalize on the growing demand for data centre services driven by the shift to cloud computing and the proliferation of generative AI.

Australia: The Australian portfolio comprises eight properties with a total acquisition value of $2.3 billion and 122 MW of planned IT capacity. Key assets include data centres in Townsville, Brisbane, Sydney, and Adelaide.

North America: The North American portfolio includes five properties with a total acquisition value of $1.6 billion and 116 MW of planned IT capacity. Key assets are located in Chicago, Kansas City, Monterey Park, and Dallas-Fort Worth.

DigiCo REIT is focused on driving growth through lease-up, densification, and optimization initiatives across its value-add assets. The company is also pursuing attractive brownfield and greenfield development opportunities. Key projects include:

SYD1: A strategically positioned asset in Inner Sydney with a high-quality and diverse customer base. The asset has a planned IT capacity of 88 MW, up from the current 26 MW, with significant growth potential through repositioning and re-leasing initiatives.

CHI1: A turnkey development in Chicago with 20 MW of IT capacity expected to be delivered by August 2025.

The U.S. data centre market continues to experience strong growth, driven by increased demand for cloud computing and AI technologies. Despite supply tightness due to constrained energy and permitting issues, the market offers significant opportunities for growth, particularly in Tier 2 locations. DigiCo REIT is well-positioned to capitalize on these trends with its diversified portfolio and strategic development pipeline.