DigitalBridge Acquires Ausgrid's Plus Es for $3 Billion in Major Digital Infrastructure Deal

In a landmark transaction for Australia's digital infrastructure sector, NYSE-listed DigitalBridge has emerged victorious in the race to acquire Plus Es from Ausgrid for approximately $3 billion. The deal sees the Florida-based global digital infrastructure investor outmaneuver a formidable consortium of Australian institutional heavyweights, including the Future Fund, Morrison & Co, and Aware Super.

Advised by Bank of America and Herbert Smith Freehills Kramer, DigitalBridge secured the asset after what sources describe as a competitive and tightly contested process. Plus Es is understood to be a portfolio of data centers, fiber networks, and related digital assets that form part of Ausgrid's broader infrastructure holdings, though precise details of the asset composition remain confidential.

The acquisition underscores the growing global appetite for Australian digital infrastructure, driven by surging demand for data storage, cloud computing, and connectivity. For DigitalBridge, which manages over $75 billion in assets globally, the purchase represents a strategic expansion into the Asia-Pacific region's rapidly digitizing economies.

The losing consortium—comprising the Future Fund, Morrison & Co, and Aware Super—was seen as a formidable competitor given its deep domestic knowledge and long-term investment horizons. Morrison & Co, in particular, has a strong track record in Australian infrastructure, while the Future Fund and Aware Super are among the country's largest pension funds.

The sale also reflects Ausgrid's ongoing strategy to streamline its portfolio. The state-owned electricity distributor has been reshaping its asset base amid the energy transition, and the Plus Es divestment is consistent with its focus on core electricity network operations.

Regulatory approval from the Foreign Investment Review Board (FIRB) will be a key next step, given the strategic nature of digital infrastructure. While no timeline has been announced, industry observers expect the deal to face close scrutiny but ultimately proceed, given DigitalBridge's established reputation as a long-term infrastructure investor.

The transaction is expected to close in the first half of 2026, subject to customary conditions.

Why This Matters

Foreign ownership of critical infrastructure: The sale of Plus Es to a US-based firm raises questions about Australia's comfort with foreign control of digital backbone assets, especially with data sovereignty concerns rising.
Pension fund competition: Australian super funds are actively seeking large-scale infrastructure investments to match long-term liabilities; losing this deal may push them to pursue higher-risk or international targets.
Market valuation signal: The $3 billion price tag sets a benchmark for Australian digital infrastructure assets, potentially catalyzing further M&A activity as other utilities and asset owners reassess their portfolios.

Background

DigitalBridge is a global digital infrastructure investor with a portfolio spanning data centers, fiber, cell towers, and edge infrastructure across North America, Europe, and Asia. Its acquisition of Plus Es comes as data demand skyrockets due to AI workloads, cloud migration, and 5G rollout. Ausgrid, a state-owned electricity distributor in New South Wales, has been shedding non-core assets to focus on its regulated electricity network. The company previously sold its stake in a telecommunications venture in 2023. The Future Fund, Morrison & Co, and Aware Super formed a consortium to counter DigitalBridge's bid, arguing that domestic ownership would better protect national interests.

Key Perspectives

[DigitalBridge]: Sees Plus Es as a gateway to the growing Asia-Pacific digital infrastructure market. The acquisition fits its strategy of owning and operating critical digital assets globally, with plans to invest further in Australian data centers and fiber networks. [Consortium (Future Fund, Morrison & Co, Aware Super)]: Argue that local ownership ensures long-term alignment with Australia's economic and security interests. The consortium's defeat highlights the challenge domestic funds face when competing with globally scaled, specialized investors. [Critics/Skeptics]: Question whether foreign ownership of digital infrastructure poses security risks, especially amid escalating geopolitical tensions. Others argue that the deal's price—reportedly full or above-market—could overheat asset valuations in the sector.

What to Watch

FIRB approval timeline and conditions — Any unexpected national security conditions or rejection would be a major story.
Portfolio disclosure — Details on Plus Es's exact assets will clarify the strategic value of the deal.
Competing bids — Other global infrastructure funds may now target remaining Australian digital assets, potentially driving up prices.

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