DigiCo Sells Chicago Data Centre for US$750M to Cut Debt and Fund Sydney Expansion

DigiCo Infrastructure REIT has shared recent updates about selling assets, reducing debt and focusing on its main Sydney project to support growth and improve returns for investors.

DigiCo Infrastructure REIT (ASX: DGT) 

on 6 May 2026 shared a major update about selling its Chicago CHI1 data centre. The deal is valued at US$750 million and is about five percent higher than its earlier purchase price. This step will sharply reduce debt from about $1.5 billion to near $0.5 billion and lower gearing from 36 percent to 17 percent. Liquidity will rise to around $0.9 billion. The company said this stronger position will fully fund the SYD1 88MW project. It also expects US asset sales to improve funds from operations from FY27. Along with this it may return extra capital to investors through higher distributions.

The company is selling US assets to free up capital and then shifting that money into the SYD1 expansion which offers higher returns. Apart from CHI1 the company is also reviewing options to sell LAX1 and LAX2 sites. These assets may be monetised to unlock value. Other US facilities like Kansas City and Dallas Fort Worth will continue to operate as stable assets. The Chicago sale alone is expected to release about $360 million after debt repayment. This improves financial flexibility and supports growth while keeping gearing within the target range.

Future Plans

The company plans to accelerate the SYD1 development which is its main growth driver. The first 15MW upgrade has already been completed and the remaining 5MW is expected before 30 June 2026. The full 88MW project is moving forward with design progress reaching about 70 percent. A main contractor is expected to be selected in the third quarter of calendar year 2026. Delivery will happen in stages over the next three years with 10MW targeted in mid 2027. Strong demand continues for this facility and the company believes it will generate solid returns. It also plans to review capital management options including paying out excess funds above normal levels in the short term.

On 7 April 2026 the company withdrew its application for the LAX1 data centre project due to uncertain approval from local authorities. It now plans to explore other uses for the land and recycle the invested capital. The earlier results for the half year ended 31 December 2025 showed stable progress. Revenue reached $108 million and EBITDA was $57 million showing growth from the previous period. The business secured strong contract wins and SYD1 capacity is fully booked. Cost savings of about $5 million per year are expected from internal changes. The SYD1 expansion is fully approved and supported by strong demand which reinforces future earnings growth potential.

(Source: Company Report)