Update on CDC Customer Contracts and Independent Valuation

Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
6 January 2025

Update on CDC Customer Contracts and December Independent Valuation

CDC has entered into over 230MW of new customer contracts, of which a little over half are in the
form of reservations. These contracts are across multiple geographies, supporting CDC’s ongoing
growth and development.

CDC continues to see robust and broad-based customer demand, including interest for capacity
above levels previously announced. As such, CDC expects a significant portion of the newly
contracted reservations to convert into customer capacity in 2025. CDC is continuing to progress
contracting the balance of the 400MW of capacity that Infratil has previously announced were in
advanced negotiations. Updates on progress and signing of these contracts is expected in the first
half of 2025.

The signing of these contracts reflects the strong customer demand CDC has been experiencing,
which has enabled an increase in its forecast build capacity by over 1,000MW in the last six
months. CDC’s development program continues at an accelerated pace, with 388MW of built
capacity under construction across multiple sites. Furthermore, construction of more than 200MW
of additional capacity is set to commence within the next 6 months, including the first stage of the
Marsden Park campus, as previously announced.

CDC’s forecast build capacity to FY2034 has increased 158MW since September 2024, reflecting
the upsizing of future development sites in Melbourne. The overall operating and under
construction capacity remains unchanged.

Region
Status
Build Capacity
(MW) to FY34,
as at
30 September 2024
Build Capacity
(MW) to FY34,
as at
31 December 2024
Canberra
Operating 117 117
Sydney
Operating 123 123
Melbourne
Operating
34 34
Auckland
Operating
28 28
Total Operating Capacity 302 302
Canberra Under Construction 39 39
Sydney
Under Construction 158 158
Melbourne
Under Construction 121 121
Auckland
Under Construction 70 70
Total Under Construction Capacity 388 388
Canberra Future Build 93 93
Sydney Future Build
879 879
Melbourne Future Build 472 630
Australian Expansion Future Build 36 36
Auckland Future Build 126 126
Total Future Build Capacity 1,606 1,764
Total Capacity 2,296 2,454


To support the acceleration in demand, in December, Infratil funded A$433 million in equity to
CDC (pro-rata with other shareholders), and expects to commit a further A$250 million over the
next one to two years to continue to fund the expanding development pipeline.

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This equity contribution is reflected in the 31 December 2024 independent valuation of Infratil’s
investment in CDC, which shows a net increase of A$113 million over the three months since the
30 September 2024 valuation.

The independent valuer’s assessment of the future base rate curve, specifically the 90-day BBSW
across the forecast period, has increased by around 30 basis points since September. This has
resulted in a reduction in valuation, primarily as a result of increased interest costs over the
forecast period, materially offsetting the increase in valuation as a result of the equity funding
mentioned above.

The blended cost of equity used in the valuation has increased from 12.40% to 12.50% between
September and December 2024, contributing a modest reduction in valuation. This reflects a slight
increase in gearing across the total forecast period, as a result of higher forecast debt levels as
CDC continues investment in its expanded development pipeline. The increase in gearing is
partially offset by a decrease in the asset-specific risk premium, driven by the valuer’s assessment
of the status of CDC’s customer discussions and their overall view of CDC’s ability to deliver on
its forecast growth. The risk-free rate has remained constant at 3.90%.
The net result is that Infratil’s 48.17% investment in CDC is now valued at between A$4,485 million
and A$5,385 million (with a midpoint of A$4,924 million), up from A$4,386 million to A$5,248
million (with a midpoint of A$4,811 million) at the end of September 2024.

Enquiries should be directed to:

Mark Flesher
Investor Relations
Email: mark.flesher@infratil.com
Authorised for release by:

Andrew Carroll
Infratil Chief Financial Officer

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Appendix 1 – Independent Valuation Summary 31 December 2024
Valuation Methodology 31 December 2024 30 September 2024
Primary valuation
methodology
DCF using FCFE (with a cross check to comparable companies and
precedent transactions), surplus and underutilised land at cost
Forecast period
30 years (2055) 30 years (2055)
Enterprise value
A$13,399 million A$13,441 million
Equity value
A$10,223 million
(IFT share: A$4,924 million)
A$9,987 million
(IFT share: A$4,811 million)
Net debt including accrued
RMS payments
A$3,176 million A$3,454 million
Key Valuation Assumptions
Risk free rate 3.90% 3.90%
Asset beta 0.575 0.575
Cost of equity
(blended rate) reflecting the
assessed risk of the spectrum of
CDC’s activity, from operating data
centres with contracted revenues
through to developing projects
without contracted revenues.
12.50% 12.40%
Terminal growth rate 2.5% 2.5%
Long term EBITDA margin 85% (2039); 83% (2055) 85% (2039); 83% (2055)
Capex
Future capex reflects CDC’s
published development pipeline
Valuation assumes no
development beyond 2040
Valuation assumes no
development beyond 2040