DigiCo Infrastructure, the Australian data center landlord, announced the sale of its CHI1 facility in Chicago for $750 million. The deal is intended to reduce debt and finance the development of its SYD1 site in Sydney. Shares surged as much as 18.64 percent to A$2.8, marking the strongest intraday rally in seven months.
The company spun off from HMC Capital in late 2024 with a A$2 billion IPO. The sale represents a near five percent premium to the November 2024 acquisition price and will unlock about A$360 million in cash proceeds. DigiCo's liquidity is set to increase to about A$900 million, with pro-forma net debt falling to A$500 million from A$1.5 billion at the end of 2024.
Interim CEO Chris Maher emphasized that the capital release provides additional financial flexibility and accelerates the SYD1 development program. The Chicago facility has 32 megawatts of capacity and is leased to a major hyperscale customer under a 15-year agreement. The sale is expected to close in the first quarter of fiscal 2027.
DigiCo also plans to consider capital management measures, including returning excess cash to investors through higher distributions. Separately, it is weighing monetization options for its LAX1 and LAX2 Los Angeles sites after withdrawing its application for a data center at LAX1 in April. The company reaffirmed its fiscal 2026 underlying operating earnings guidance of A$125 million, up from A$99 million a year earlier.