Infratil's Longroad Energy Data Center Strategy

Infratil's Longroad Energy Data Center Strategy

An interesting new detail in Infratil's annual result was the data-center strategy mulled by its Longroad Energy business. Analyst Ben Crozier from Forsyth Barr says it isn't clear what this strategy exactly looks like.

Longroad has land adjacent to some renewable-energy projects for more than 4 gigawatts of data centers. Forsyth Barr notes that Longroad won't transform into another CDC but rather could develop powered shells, potentially alongside a partner.

CDC is the Australian data-center business that accounts for more than half of Infratil's value. Longroad, in contrast, represents only 10% of Infratil's worth. Forsyth Barr adds that a U.S. expansion and partnership between CDC and Longroad wasn't ruled out and could be promising, but Longroad's plans are in the early stages.