DigiCo Infrastructure REIT has signed a 15-year contract for 71MW of capacity at its SYD1 facility in Sydney, taking the site to 100 percent leased across 88MW of total capacity once current upgrades finish.

The ASX-listed firm announced the deal this week. The customer is an unnamed global technology firm, backed by what DigiCo calls "investment-grade credit support." No pricing was disclosed.

The contract includes the reallocation of 20MW of existing contracted capacity to the new tenant. The remaining 17MW of SYD1 capacity stays with co-location customers (firms renting rack space and power rather than whole buildings).

What does the deal change for SYD1?

It locks in the site's economics years ahead of plan. DigiCo is expanding SYD1 to nearly double its capacity, and the first 10MW of the SYD1 Expansion should be energized and income-producing in late Q4 FY27. The balance arrives progressively over FY28, aligned to customer requirements.

Simon Mitchell, co-head and CFO of DGT, said: "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. The 15-year agreement with a global technology firm provides long-term earnings visibility, supported by investment-grade credit backing. It validates the quality of our infrastructure and strengthens the quality of cash flows from our portfolio."

The deal also compresses the original five-year leasing timeline. Mitchell added: "When we acquired SYD1, our business plan was to fully lease and develop the site to 88MW over five years, and we now expect to reach that milestone well ahead of our original plan."

How did DigiCo get here?

The trail runs through HMC Capital. The investment manager acquired Global Switch's Australian business — a two-building facility in Sydney's Ultimo area — in 2024. It then launched and floated DigiCo Real Estate Investment Trust (a listed property trust structure that distributes rental income to unitholders) to hold its data center assets, including the Sydney site.

For the Australian data center market, a fully contracted 88MW campus with a global hyperscaler-grade tenant signals sustained demand for capacity in Sydney, one of Asia-Pacific's tightest supply markets.