By David Winning

SYDNEY--Infratil said it will raise up to 1.15 billion New Zealand dollars (US$710 million) of equity to take advantage of a surge in demand for data centers as a result of the AI boom.

Infratil said the raising comprises an underwritten NZ$1.0 billion share placement, and a NZ$150 million non-underwritten retail offer of new shares. The placement involves Infratil issuing new shares at NZ$10.15 each, representing a 6.8% discount to its closing stock price on Friday.

Infratil said proceeds would mainly be used to fund growth in data center operator CDC, which is in advanced talks with customers over 400 megawatts of capacity at several sites. The additional capacity is due to come online over the next 4-5 years.

"CDC's growth has accelerated considerably recently, driven by rapid growth in AI-driven data demand," said Jason Boyes, Infratil's chief executive.

Infratil said it expects to invest around 600 million Australian dollars (US$397 million) in CDC over the next two years, noting that CDC expects to begun construction of at least 200 megawatts of capacity within 12 months, including at Marsden Park in Sydney.

"We are seeing an unprecedented increase in the number of customer discussions, many of which are tied to AI-related workloads," said CDC Chief Executive Greg Boorer. "CDC has been AI-ready for more than 15 years, and is well positioned to capture strong share of AI-driven demand."

Write to David Winning at

(END) Dow Jones Newswires

06-16-24 1703ET