DigiCo Infrastructure REIT: A High-Conviction Play in the Digital Economy's Infrastructure Boom

The digital economy's relentless expansion is reshaping global infrastructure demand, with data centres emerging as critical linchpins for economic resilience and technological innovation. At the forefront of this transformation is DigiCo Infrastructure REIT (ASX:DGT), a digital infrastructure player poised to capitalize on surging demand for IT capacity and cloud services. With a clear trajectory toward AU$180 million in run-rate EBITDA by 2026 and an 85 MW IT capacity target, DigiCo is positioning itself as a compelling high-conviction investment in a sector defined by structural growth and defensive characteristics.

EBITDA Growth: From Current Strength to Future Run-Rate Potential

DigiCo's 2025 Annual Report revealed a robust EBITDA of $99 million, surpassing initial estimates and underscoring the REIT's operational traction, as reported in the Listcorp Annual Report 2025. This performance sets a strong foundation for its forward-looking guidance: management now anticipates FY26 underlying EBITDA in the range of A$120–125 million, a 21–26% increase from FY25 results, as noted in the Proactive Investors article. Crucially, the company has also outlined a longer-term vision. Known contracted billings are expected to generate an annualised run-rate EBITDA of at least $180 million by July 2026, a 49% jump from FY25 levels, according to the Listcorp DigiCo earnings guidance. This leap is driven by a pipeline of new customer agreements, including high-density data centre contracts in Sydney, Brisbane, and Adelaide, which have added 14 MW of capacity since the last update, as reported in the Datacenter Dynamics coverage.

The path to $180 million EBITDA is further supported by DigiCo's capital expenditure strategy. A $160–180 million CAPEX plan, funded by existing cash reserves and undrawn debt facilities, is accelerating the development of high-demand infrastructure, particularly at its flagship SYD1 data centre, according to the Datacenter Dynamics coverage. This strategic focus on high-margin, long-term contracts-many with multi-year terms-reinforces the REIT's ability to convert capacity into consistent cash flows.

IT Capacity Expansion: Building for the Future

DigiCo's 85 MW IT capacity target by July 2026 is not merely a numerical goal but a strategic imperative. The REIT's SYD1 facility, designated as "Certified Strategic" under federal policy, is undergoing a 9 MW expansion to meet surging demand for high-density infrastructure, as noted in the Proactive Investors article. This project, coupled with incremental capacity additions in regional hubs like Brisbane and Adelaide, positions DigiCo to capture a growing share of Australia's $10 billion data centre market, which is expanding at a 12% CAGR, as reported in the Datacenter Dynamics coverage.

The company's expansion strategy is also underpinned by its ability to secure premium contracts. For instance, SYD1's strategic status opens doors to government and enterprise clients seeking resilient, secure infrastructure-a critical differentiator in an era of heightened cybersecurity and regulatory scrutiny. As stated by DigiCo's management, "Our ability to deliver certified, high-capacity solutions aligns with the evolving needs of a digital-first economy," as reported in the Listcorp DigiCo earnings guidance.

Defensive Characteristics in a Demand-Driven Sector

DigiCo's business model combines the defensive traits of infrastructure assets with the growth potential of the digital economy. Its long-term, inflation-linked contracts provide stable cash flows, while the scarcity of premium data centre sites-particularly in Sydney-creates a moat against competition. The REIT's balance sheet, with a debt-to-EBITDA ratio of 5.5x (well within covenants), further enhances its resilience, as detailed in the Listcorp Annual Report 2025.

Moreover, the global shift toward cloud computing and AI is amplifying demand for colocation services. DigiCo's focus on high-density, energy-efficient infrastructure ensures it remains at the forefront of this trend. As noted in the Proactive Investors article, "Digital infrastructure is the new utility-a sector where demand is inelastic and growth is structural."

Conclusion: A High-Conviction Infrastructure Play

DigiCo Infrastructure REIT's dual focus on EBITDA growth and IT capacity expansion positions it as a standout opportunity in the digital economy. With a clear line of sight to $180 million in run-rate EBITDA by 2026 and an 85 MW capacity target, the REIT is leveraging its strategic assets and disciplined capital allocation to outperform peers. For investors seeking exposure to a sector defined by secular growth and defensive characteristics, DigiCo offers a compelling case.