Infratil has lifted its FY27 earnings guidance on the back of accelerating data centre demand across its portfolio, signalling that the infrastructure investor’s strategic pivot toward AI infrastructure is delivering tangible results. The company increased its proportionate EBITDAF guidance for FY27 from NZ$1,300-1,400 million to NZ$1,320-1,420 million, a modest but meaningful adjustment that reflects upgraded expectations from its crown jewel, CDC Data Centres.
The guidance increase is anchored in hard contract wins. CDC, which now represents just over half of Infratil’s NZ$22 billion asset base, signed another 70 megawatts of capacity in the current financial year. This brings CDC’s total contracted pipeline to 1.1 gigawatts, against 350 megawatts of deployed capacity today. When fully built out, this contracted base is expected to generate A$2.2 billion in EBITDAF, providing significant visibility into earnings growth over the coming years. The company has also upgraded CDC’s FY27 guidance from A$680-720 million to A$710-750 million, reflecting both the new contract wins and operating cost savings.
What matters here is not just growth, but the quality of that growth. CDC and Infratil’s other core platforms benefit from contracted revenues that cover over half their valuations. This structural feature provides downside protection in economic uncertainty and de-risks the development pipeline. The company is extending this model across its portfolio. Longroad Energy in the United States is acquiring a 2.8 gigawatt project and targeting 2.5 gigawatts of annual development through 2027-2029, positioning itself to capture sustained demand from AI-driven power consumption. Longroad is also exploring co-location opportunities, identifying a 10 gigawatt pipeline of solar sites suitable for data centre deployment, effectively creating a new growth vector from existing assets.
One New Zealand, while less glamorous, remains a reliable cash generator and has made material progress on its IT modernisation programme. The proposed infrastructure sharing arrangement with 2degrees, once it clears regulatory hurdles, will improve capital efficiency for both parties while preserving service-level competition, a sensible outcome for a mature telecom market. EonFibre’s separation has positioned that fibre business to benefit from future data centre buildouts across New Zealand.
The guidance upgrade is modest in percentage terms, reflecting the incremental nature of the CDC contract wins and the timing of their revenue contribution. However, the announcement reveals a company operating with momentum across its highest-conviction assets. Investors should monitor how effectively CDC converts its contracted 1.1 gigawatt pipeline into deployed capacity and what margins it achieves in the process. The success of Longroad’s acquisition integration and its ability to sustain a 2.5 gigawatt annual development pace during 2027-2029 will also merit close attention. Regulatory clearance for the One New Zealand co-location arrangement with 2degrees is another key catalyst. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Infratil Limited (ASX: IFT)
Infratil Limited is a New Zealand-based infrastructure investment company listed on the ASX and NZX. The company invests in and operates renewable energy assets, airports, diagnostic imaging services, and digital infrastructure businesses across New Zealand, Australia, the United States, Asia, the United Kingdom, and Europe. Its portfolio includes renewable energy generators, Wellington International Airport, healthcare imaging networks, and telecommunications infrastructure.
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