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DigiCo Infrastructure has announced the sale of its Chicago data centre for USD 750 million, aiming to reduce debt and strengthen liquidity while funding its Sydney expansion. The deal, expected to close in the first quarter of fiscal 2027, has significantly boosted investor confidence, pushing the company’s shares up over 25 percent. The transaction will lower net debt and improve cash reserves. DigiCo is also exploring monetisation of its Los Angeles assets and may return excess cash to investors, while maintaining its earnings outlook for fiscal 2026.
DigiCo Infrastructure said it will sell its Chicago-based data centre for USD 750 million as part of its plan to reduce debt and support ongoing expansion in Australia. The move led to a sharp rally in the company’s shares, which rose over 25 percent during trading, marking their strongest single-day gain in more than a year. Advertisement
The company confirmed that it has entered into an agreement with a North American fund manager experienced in data centre investments, though it did not disclose the buyer’s identity. The transaction is valued at a nearly 5 percent premium compared to the asset’s acquisition price from late 2024, reflecting an increase in asset value within a relatively short period.
Following repayment of asset-level debt, DigiCo expects to generate around AUD 360 million in net cash proceeds from the sale. These funds will be used to strengthen its balance sheet and partly finance the development of its Sydney data centre project, which remains a key focus area for growth.
An analyst from Seneca Financial Solutions noted that the premium valuation highlights the strength of DigiCo’s portfolio and reinforces investor confidence in the company’s asset base and valuation metrics.
The deal is set to significantly improve the company’s financial position. DigiCo’s liquidity is projected to increase to about AUD 900 million, while its pro-forma net debt is expected to reduce sharply to AUD 500 million from AUD 1.5 billion reported at the end of last year.
The Chicago facility, known as CHI1, has a capacity of 32 megawatts and is leased to a major hyperscale client under a long-term 15-year agreement, ensuring stable revenue generation. The transaction is scheduled to close in the first quarter of fiscal 2027.
DigiCo also indicated that it may consider capital management actions in the near term, including returning surplus cash to investors through higher distributions. This will be supported by proceeds from its U.S. asset sales and improved debt levels.
In addition, the company is reviewing monetisation options for its Los Angeles assets, specifically the LAX1 and LAX2 sites. This comes after it withdrew its earlier application for a data centre at the LAX1 location due to uncertainty around planning approvals.
DigiCo was spun off from HMC Capital in late 2024 through an initial public offering valued at AUD 2 billion, positioning itself as a focused data centre platform amid growing global demand for digital infrastructure.
The company has maintained its earnings outlook for fiscal 2026, projecting underlying operating earnings of AUD 125 million, compared to AUD 99 million reported in the previous year, indicating continued growth despite ongoing portfolio adjustments.
Source Reuters
5th Jun, 2025
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