Infratil’s CDC Stake Increase Signals Confidence Amid Regulatory Watch

Infratil Strengthens Position in CDC Data Centres

Infratil Limited (NZX/ASX: IFT) has announced a strategic increase in its ownership of CDC Data Centres, acquiring an additional 1.58% stake for approximately A$216 million. This move comes alongside the Future Fund, which acquired the remaining 10.46% of a 12.04% stake sold by Commonwealth Superannuation Corporation (CSC). Upon completion, Infratil will hold 49.75% of CDC, Future Fund 34.55%, and CSC 12.04%, with CDC management retaining 3.66%.

The acquisition values CDC at an equity valuation of A$13.7 billion, underscoring the significant scale and growth potential of the data centre provider. Infratil CEO Jason Boyes highlighted the transaction as a reaffirmation of their confidence in CDC's future, citing the strong tailwinds in digital infrastructure driven by cloud adoption and emerging technologies like Generative AI.

Growth and Expansion Plans Underpin Investment

CDC is currently operating with approximately 2.5GW of capacity across operational, under construction, and development pipelines. The company is actively expanding, with new campuses underway at Marsden Park and Laverton, the latter having recently broken ground. The Laverton campus alone is expected to add around 210MW of capacity, complementing CDC’s existing Melbourne data centre in Brooklyn.

CEO Greg Boorer emphasized CDC’s evolution into a premier data centre platform, driven by a customer-centric approach and technological innovation. The backing from major shareholders like Infratil and Future Fund provides CDC with a robust foundation to pursue its growth ambitions and meet escalating demand from some of the world’s largest organisations.

Strategic Implications and Market Position

The increased stake acquisition not only boosts Infratil’s governance rights but also signals a strong vote of confidence in CDC’s strategic direction. The partnership between Infratil, Future Fund, and CSC ensures a stable and long-term shareholder base, which is critical for sustained investment in digital infrastructure.

James White, Director of Infrastructure at Future Fund, echoed this sentiment, praising CDC’s proven track record in building and operating critical infrastructure. The transaction is expected to close in the second half of 2025, pending customary conditions including Foreign Investment Review Board approval.

Infratil plans to fund the acquisition through existing debt capacity and cash reserves, reflecting a disciplined approach to capital management amid an environment of accelerating digital transformation.