The scramble to build the infrastructure behind artificial intelligence is no longer confined to Silicon Valley. It is increasingly reshaping investment flows, energy demand and digital infrastructure strategy across Australia and New Zealand — and Infratil (ASX:IFT)-backed CDC Data Centres has delivered one of the clearest signs yet of how quickly the market is scaling.
Infratil revealed this week that CDC had secured a 555-megawatt (MW) data centre contract with a US investment-grade customer, described as the largest data centre deal in Australian history. Infratil holds a 49.7% shareholding in the company.
The scale of the agreement is significant. The 555MW allocation alone is equivalent to around 40% of all operating Australian data centre capacity in 2025, according to the company, and pushes CDC’s total contracted capacity beyond 1 gigawatt (GW).
For a sector once viewed largely as a niche part of telecommunications infrastructure, the numbers now resemble those associated with major industrial or utility-scale projects.
The deal also reflects a broader shift under way globally as hyperscalers, AI companies and cloud providers race to secure long-term computing capacity amid rising demand for artificial intelligence workloads.
AI driving larger, more power-intensive campuses
Traditional cloud computing already required enormous amounts of server infrastructure, but generative AI has significantly increased the intensity of computing demand.
Training and running large AI models requires densely packed GPU clusters, advanced cooling systems and substantial power availability, pushing operators towards larger, purpose-built campuses rather than incremental expansion.
CDC founder and chief executive Greg Boorer said the contract reinforced Australasia’s position as a destination for large-scale data infrastructure.
“This is another massive tick of approval for Australia as a global hub for intelligence generation,” Boorer said. “We have been working hard for nearly 20 years preparing for this moment, and this is only the beginning of an era of prosperity and growth for Australia in this space.”
The company said the newly contracted capacity will be delivered across campuses already under development and is expected to become operational through FY28 and FY29.
Importantly, the deal does not require additional shareholder equity, with CDC saying the expansion fits within its existing development pipeline and funding plan.
Digital infrastructure becomes strategic asset
The announcement also highlights how the data centre sector is increasingly tied to broader questions around digital sovereignty, energy security and geopolitical positioning.
CDC has built its business around secure infrastructure for government agencies, critical infrastructure operators and hyperscale cloud providers. That positioning may become increasingly important as governments place greater emphasis on where sensitive AI systems and computing workloads are physically located.
The company noted that all of its facilities carry “Certified Strategic” accreditation, while Infratil chief executive Jason Boyes said the agreement reinforced Australasia’s ability to attract global computing capacity through regional stability, renewable energy access and competitive build costs.
The financial implications are also becoming more substantial.
CDC said EBITDAF is expected to exceed A$1 billion in FY28, while fully deployed contracted capacity could eventually support around A$2 billion in annualised EBITDAF.
Energy demand becomes central
Rapid growth across the sector is also intensifying pressure on power infrastructure.
Large-scale AI infrastructure consumes substantial amounts of electricity, with power availability increasingly emerging as a key constraint on future data centre development globally.
CDC currently has 572MW of capacity under construction and a broader 2.9GW development pipeline extending through to 2034 across Australia and New Zealand.
The company said it continues acquiring additional land and power access to support future demand, with forecasts suggesting global data centre IT load demand could rise from 103GW in 2024 to more than 250GW by 2030.
For investors, the contract underscores how AI infrastructure demand is increasingly flowing beyond software and semiconductor companies into the physical infrastructure required to support large-scale computing capacity.