At a glance

  • DigiCo beat its FY26 earnings guidance, reporting underlying EBITDA of A$127 million against the A$125 million it guided.
  • Conditional agreements cover three of DigiCo's five American data centres, freeing about A$470 million to reinvest.
  • The first 20MW in Sydney is built, with the next 10MW online at the end of FY27 and 42MW following through FY28.
  • FY27 earnings guidance of A$120 million to A$125 million sits below the FY26 result while the distribution is guided 25% higher.
  • The Australian portfolio is expected to make about A$250 million of EBITDA a year once full, on about A$1.2 billion of spending to get there.

DigiCo beats FY26 guidance and guides FY27 lower

DigiCo Infrastructure REIT reported its FY26 full-year result to the ASX on 21 August 2026, for the year ended 30 June 2026, its first full financial year since listing. The ASX-listed owner of data centres in Australia and the United States is selling three of its five American sites, in Chicago and Los Angeles, and putting the proceeds into Sydney capacity that starts coming online at the end of FY27. Underlying revenue was A$239 million and underlying EBITDA, struck before interest, tax, depreciation and one-off items, was A$127 million against A$125 million guided. The distribution was 12.0 cents per security, in line with guidance. Below the underlying line, the statutory result was a loss of A$100.8 million, A$44.0 million of it from writing off equipment removed during the Sydney upgrade and from the sale of its cloud services business during the year.

FY27 underlying EBITDA is guided at A$120 million to A$125 million, below the A$127 million just reported, and the distribution 25% higher at 15.0 cents. Excluding the two months of Chicago earnings still inside that range, DigiCo guides A$110 million to A$115 million. It calls that 15% to 21% growth on FY26, measured across only the assets it is keeping. DigiCo gives up the American earnings during FY27 and completes the Sydney upgrade replacing them in FY28. It expects the Australian portfolio to make about A$250 million of EBITDA a year once that capacity is full, on about A$1.2 billion of spending across the two years to get there.

At the close on 21 August 2026 DigiCo securities were A$2.53, down 9.3%. Goodman Group reported its own FY26 result a day earlier, on 20 August 2026, with data centres at 78% by value of what it has under construction.

Measure FY26 result FY27 guidance
Underlying EBITDA A$127m, above A$125m guided A$120m to A$125m, or A$110m to A$115m without Chicago
Distribution per security 12.0 cents 15.0 cents
Capital spending A$178m A$300m to A$500m

Source: DigiCo FY26 results announcement and FY26 results presentation, 21 August 2026.

Chicago and Los Angeles are under conditional sale agreements

CHI1 in Chicago is under a conditional sale agreement, with the tenant now occupying all three phases and completion expected by the end of the first quarter of FY27. A second conditional agreement covers the LAX1 and LAX2 sites in Los Angeles, expected to become unconditional and close in the second quarter of FY27. DigiCo expects about A$470 million to reinvest once the debt secured against the assets and the transaction costs are paid, and says the two sales take net debt from A$1.6 billion to about A$0.5 billion before that reinvestment.

KCM1 in Kansas City and DAL1 in Dallas Fort Worth stay, on leases now running to 2036. Twelve properties bill customers for 85MW of IT capacity across the group, 41MW of it in Australia and 44MW in North America. The seven Australian properties carry A$2.5 billion of the portfolio's A$4.1 billion independent valuation. At 30 June 2026 the five North American properties served two customers between them, the seven Australian ones more than 550.

SYD1 in Ultimo is being upgraded to a total 88MW

The first 20MW at SYD1 was completed on time and on budget during FY26, and DigiCo says letters of intent now cover a further 52MW, with binding documentation still to be executed. The 88MW is the whole site once the upgrade finishes, counting capacity SYD1 already had as well as those two stages, and DigiCo has not published what that starting capacity was. Its December 2025 development approval announcement describes the work as a densification and optimisation program "to upgrade capacity at DigiCo's SYD1 data centre to 88MW".

New South Wales approved the expansion in December 2025, covering two extra levels on the existing buildings and a 12 metre increase in height, and DigiCo says the site holds approved grid capacity for the full 88MW. Laing O'Rourke is the delivery partner on a fixed-price design and construction contract. The first 10MW of the 52MW is due online at the end of FY27, with the remaining 42MW through FY28. FY26 capital spending was A$178 million, most of it at SYD1, and DigiCo guides A$300 million to A$500 million for FY27, weighted to the second half. It says the project is fully funded.

Adelaide, a 1GW greenfield pipeline and three certified sites

ADL1 in Adelaide is next, a 15MW expansion DigiCo says is in advanced discussions with customers. The company is also evaluating more than 1GW of new capacity on greenfield sites, planned as campuses serving several tenants.

Three DigiCo facilities sit on the Australian government's hosting certification register, which sets who may host government workloads and at what level. The register of certified service providers, checked on 21 August 2026, lists BNE2 in Brisbane at the government's Certified Strategic level across the whole facility, and ADL1 and SYD1 at the same level as enclaves, where the certification covers part of a building.

Simon Mitchell and Ralph Goninan become co-heads of DigiCo

Chris Maher stepped down as DigiCo's interim chief executive on 21 August 2026, the company told the ASX, with chief financial officer Simon Mitchell and chief development officer Ralph Goninan appointed co-heads of DigiCo the same day, both keeping their existing responsibilities.

Mitchell said the sale of the American assets "allows capital to be recycled into our highest conviction growth opportunity, the SYD1 88MW Project, which is fully funded, while maintaining balance sheet capacity and supporting securityholder distributions".

What to watch

The Chicago completion. DigiCo expects the CHI1 sale to complete by the end of the first quarter of FY27 and the Los Angeles sales to close in the second. Both agreements are conditional, and the A$470 million to reinvest depends on them.

The binding SYD1 contracts. Letters of intent cover the remaining 52MW, and none has yet been converted into signed documentation. The first 10MW is due online at the end of FY27, when the Australian build starts replacing the American earnings.

The A$1.2 billion capital program. A$300 million to A$500 million of it is guided for FY27, weighted to the second half, with the balance falling into FY28. The American proceeds are part of how DigiCo says the SYD1 project is funded.

The Adelaide contract. DigiCo says the 15MW ADL1 expansion is in advanced discussions with customers. It defines the A$250 million Australian target as the earnings once both SYD1 and ADL1 are fully occupied.