DigiCo signs 71MW Sydney data center lease, taking SYD1 to fully leased

DigiCo Infrastructure REIT has signed a 15-year contract for 71MW of capacity at its SYD1 data center in Sydney with an unnamed global technology firm, the ASX-listed company said this week. The agreement carries what DigiCo describes as investment-grade credit support and brings the facility to fully leased across the 88MW it will hold once current upgrades and expansions are complete.

Not all of the 71MW is new demand: 20MW was already contracted at the site and is being reallocated to the new customer, while the remaining 17MW of the 88MW is leased to colocation customers.

"Execution of the 71MW contract at SYD1 is a key milestone for DGT, taking the site to 100 percent contracted across 88MW of total capacity," said Simon Mitchell, co-head and CFO of DGT.

DigiCo expects the first 10MW of the SYD1 Expansion to be energized and income-producing in late Q4 FY27, with the balance delivered progressively over FY28.

The Sydney facility reached DigiCo through HMC Capital, which acquired Global Switch's Australian business in 2024 and then floated DigiCo to hold its data center assets, including the Ultimo site. Mitchell said the original plan was to fully lease and develop SYD1 to 88MW over five years, and DigiCo now expects to reach that milestone ahead of plan.

Reallocating 20MW to the new customer leaves 71 of the site's 88MW contracted to one unnamed counterparty on a 15-year term, concentrating the facility's revenue behind one credit. The credit backing is described only as investment grade. Global Switch named no tenant for the liquid-cooled Nvidia deployment it announced for Paris in late September, per this publication's reporting.