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DigiCo Signs 71MW Lease for Sydney Data Center With Unnamed Global Tech Firm

By: IDCNOVARegion: Oceania
DigiCo Infrastructure REIT has secured a landmark tenant for its Sydney data center, signing a 15-year contract for 71MW of capacity at its SYD1 facility with an unnamed global technology firm backed by investment-grade credit support. The deal marks a significant milestone for the ASX-listed real estate investment trust and brings the Ultimo-based site to full contracted capacity.

The agreement includes the reallocation of 20MW of existing contracted capacity to the new customer, with the remaining 17MW of SYD1 capacity leased to colocation customers. Once current upgrades and expansions are complete, the facility is set to reach 88MW of total capacity, making it one of the largest data center assets in Australia.

DigiCo is in the midst of expanding the SYD site, with plans to nearly double its capacity. The company said the first 10MW of the SYD1 Expansion is expected to be energized and income-producing in late Q4 FY27, with the balance delivered progressively over FY28, aligned to customer requirements.

Simon Mitchell, co-head and CFO of DGT, described the contract as a key milestone for the company. "Execution of the 71MW contract at SYD1 is a key milestone for DGT, taking the site to 100 percent contracted across 88MW of total capacity," he said. "The 15-year agreement with a global technology firm provides long-term earnings visibility, supported by investment-grade credit backing. It validates the quality of our infrastructure and strengthens the quality of cash flows from our portfolio."

The transaction traces back to investment manager HMC Capital's acquisition of Global Switch's Australian business in 2024, which comprised a two-building facility in Sydney's Ultimo area. HMC Capital subsequently launched and floated DigiCo Real Estate Investment Trust to hold its data center assets, including the Sydney facility.

Mitchell noted that the pace of leasing has exceeded original expectations. "When we acquired SYD1, our business plan was to fully lease and develop the site to 88MW over five years, and we now expect to reach that milestone well ahead of our original plan," he added.

The deal underscores the sustained demand for data center capacity in Australia, driven by cloud computing, artificial intelligence, and digital transformation initiatives across the region. Securing a 15-year lease with investment-grade backing provides DigiCo with long-term revenue certainty and positions the company to accelerate its development pipeline in the Australian market.