IFT - Infratil

[Left Field]

Could this be the moment when the market finally "gets" IFT's potential?

The simple answer is YES.

The market fears concerning AI likely related to others in the industry (particularly in the USA) and applying these fears to CDC & IFT in the relatively stable economies of NZ & Aus,  was simply wrong for many reasons, for example;

1.) CDC have considerable 'first mover' advantages. Huge land banks and a team of builders and contractors who are delivering on time and under budget.
2.) CDC is one of very few data centre providers with 'green' renewable energy credentials. (Many of the USA DC's plan to use gas generated power!)
3.) CDC is unique in using circulating radiator water cooling. Others use evaporated water cooling which wastes billions of litres of water.
4.) IFT is using conservative BBB rated capital funding to finance CDC.
5.) Based on the revenue being generated for CDC from contracts as announced today, IFT said they could spend an additional $A 400 mill in Capex pa  and not exceed their self imposed limits.
6.) CDC have more major lease contracts in the pipeline and hope to close another one by the time of the 26 May update.
7.) The average lease span for CDC's data centres is 28 years.

etc etc...... I could go on, but that's enough from me!

[LaserEyeKiwi]

The simple answer is YES.

The market fears concerning AI likely related to others in the industry (particularly in the USA) and applying these fears to CDC & IFT in the relatively stable economies of NZ & Aus,  was simply wrong for many reasons, for example;

1.) CDC have considerable 'first mover' advantages. Huge land banks and a team of builders and contractors who are delivering on time and under budget.
2.) CDC is one of very few data centre providers with 'green' renewable energy credentials. (Many of the USA DC's plan to use gas generated power!)
3.) CDC is unique in using circulating radiator water cooling. Others use evaporated water cooling which wastes billions of litres of water.
4.) IFT is using conservative BBB rated capital funding to finance CDC.
5.) Based on the revenue being generated for CDC from contracts as announced today, IFT said they could spend an additional $A 400 mill in Capex pa  and not exceed their self imposed limits.
6.) CDC have more major lease contracts in the pipeline and hope to close another one by the time of the 26 May update.
7.) The average lease span for CDC's data centres is 28 years.

etc etc...... I could go on, but that's enough from me!

I think your point 5 about additional capex was actually the following: CDC is forecasting growing EBITDA at approx $400m each year going forward, and using the moodys approved ratio of 10x, that would enable $4 BILLION in additional capex each year.