• DigiCo Infrastructure REIT recently announced major new contracts with leading enterprise and government customers across its Australian data centre platform, committing to expand contracted IT capacity to 41MW by June 2026 and accelerating the Sydney campus expansion.

• The company’s flagship data centre was granted 'Certified Strategic' status under federal policy, opening doors to further government business as strong AI and cloud sector demand continues to drive growth expectations.

• We'll explore how DigiCo's expanded government accreditation could influence its investment narrative amid growing demand for hyperscale data solutions.

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What Is DigiCo Infrastructure REIT's Investment Narrative?

For DigiCo Infrastructure REIT, the core investment thesis still revolves around hyperscale data demand and accelerating AI adoption in Australia. The recent win, major new contracts and the ‘Certified Strategic’ designation for its Sydney campus, feels like a genuine move-the-needle moment, reinforcing short-term revenue visibility and maybe even shifting risks. Previously, near-term catalysts hinged on organic leasing wins and proving out government credibility; with this update, the business gains clearer momentum on both fronts. That said, DigiCo remains unprofitable for now, and despite robust revenue forecasts, profitability is not expected until within three years. Investors must still weigh the premium valuation (especially versus peers), and consider whether these deals can offset the challenge of ramping returns in a sector demanding substantial growth capex. The stock’s sharp rally suggests the market sees these announcements as material to both narrative and financials, at least for the months ahead. On the flip side, DigiCo’s high capital requirements remain a key risk investors shouldn’t ignore.

DigiCo Infrastructure REIT's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Simply Wall St Community members’ fair value estimates for DigiCo vary widely, spanning A$0.64 million to A$6.37 million across three opinions. While several see considerable upside over current prices, others take a far more cautious approach, reminding us that rising capex and profitability timelines can prompt very different investment conclusions among individual investors.

Explore 3 other fair value estimates on DigiCo Infrastructure REIT - why the stock might be worth over 2x more than the current price!