Cordiant Digital Infrastructure’s Hudson Interxchange Secures Major AI Contract and Expansion at 60 Hudson Street

Hudson Interxchange’s Strategic Role in New York’s Data Centre Ecosystem

Located at 60 Hudson Street, Hudson Interxchange benefits from being in New York’s most interconnected commercial building, featuring over 300 carriers within the same structure. This high density of interconnections creates significant entry barriers for competitors, enabling customers to directly link networks, reduce latency, and optimize load balancing. This announcement highlights Hudson’s strategic importance in the digital infrastructure landscape, especially as demand for AI and high-performance computing infrastructure surges.

Owned by Cordiant Digital Infrastructure, Hudson spans approximately 290,000 square feet across four floors and has access to 15MW of power from a direct utility feed. The facility’s roadmap targets delivering over 10MW of total IT capacity, offering substantial expansion and revenue growth potential. Cordiant’s ownership includes critical infrastructure such as electrical switchgear and generators, ensuring operational control and resilience demanded by premium clients for mission-critical workloads.

Details of the New Five-Year AI Infrastructure Contract and Deployment Schedule

Hudson has secured a five-year agreement with a specialist high-density GPU cloud computing provider focused on AI workloads. This contract validates Hudson’s strategy to invest in premium, high-density capacity aligned with the fast-growing AI computing market. The deal covers 1.8MW of capacity at 60 Hudson Street, with the customer holding a right of first refusal on an additional 2MW, providing potential upside while mitigating execution risk.

Deployment will be phased, with billing starting in September 2026 for an initial 450kW of high-density racks, and the remaining 1.35MW scheduled for completion by December 2026. To support this pre-sold capacity, Hudson plans to begin construction of the final two data halls on the sixth floor, complementing two data halls nearing completion. This phased approach aligns capital expenditure with contracted demand, minimizing the risk of unused capacity.

Sixth Floor Capacity Utilization and Remaining Availability

Before these new contracts, Hudson’s sixth floor had 5MW of utility power, with 3.5MW available as saleable IT load capacity. Approximately 0.9MW was already contracted, including the first data hall which sold out in 2025, indicating strong demand for premium interconnected data centre space in New York. The new contract and expansion raise total contracted IT capacity on the sixth floor to about 2.8MW, or roughly 80% of the saleable capacity.

This high utilization underscores Hudson’s effective strategy of developing premium, high-density capacity in a highly interconnected location. The announcement notes limited remaining premium capacity—around 0.7MW—potentially supporting pricing power and margins as customers compete for space. The sell-out of the first data hall in 2025 followed by this major contract win confirms ongoing market validation in the AI and high-performance computing sector.

Progress Toward Breakeven and Financial Implications for Cordiant

These new agreements are expected to bring Hudson significantly closer to breakeven upon full deployment. This is a critical update for investors tracking Cordiant’s portfolio, as Hudson is a key growth asset within its six-acquisition investment strategy. Atul Roy, Interim CEO of Hudson and Head of Telecoms Strategy at Cordiant Digital Infrastructure Management, stated the contract win confirms Hudson’s focus on high-density capacity to meet AI and HPC demand. He noted that with billing starting in September and full deployment by December, Hudson is "significantly closer to breakeven and lays the foundation for the next phase of the company’s growth."

Hudson’s move toward breakeven reflects operational progress following Cordiant’s capital raise of £795 million in equity and a €375 million debt package, which funded six acquisitions including Hudson. This milestone demonstrates the effectiveness of Cordiant’s capital deployment in scaling premium capacity amid strong demand. The December 2026 full deployment target offers investors near-term visibility on operational improvements.

Customer Profile and Contract Structure

The new customer is a specialist high-density GPU cloud computing provider supporting AI workloads, aligning with Hudson’s premium interconnect positioning. The five-year contract includes an inflation-linked revenue mechanism, providing Hudson with predictable income and protection against rising operating costs in the current economic environment.

Hudson’s customer base typically includes blue-chip carriers, internet firms, media companies, and SaaS providers, with long-term leases at premium prices across multiple clients. This diverse base reduces concentration risk and ensures stable recurring revenues. The addition of this GPU cloud computing customer expands Hudson’s footprint in the growing AI infrastructure market, validating its adaptability to evolving digital infrastructure demands.

Construction Plans for Final Data Halls and Capital Allocation

To accommodate the contracted capacity, Hudson plans to start building the final two data halls on the sixth floor, complementing two data halls nearing completion. This disciplined capital deployment approach ensures construction follows secured long-term contracts, minimizing speculative build risk. The sixth floor’s total utility power allocation is 5MW, with 3.5MW available for saleable IT load, indicating this expansion will complete the floor’s planned development.

While specific capital expenditure for these final halls was not disclosed, the planned build supports 1.8MW of contracted capacity plus 0.7MW of available space, matching customer demand. Construction timelines align with the customer’s phased deployment, targeting full completion by December 2026. This coordination reduces the risk of carrying undeployed capital.

Market Dynamics and Hudson’s Competitive Advantage

Interconnect data centres serve as critical digital infrastructure hubs, offering premium services beyond traditional colocation, such as direct network links that reduce latency and improve load balancing. High carrier density creates competitive barriers, granting facilities like Hudson pricing power and customer loyalty. Hudson’s location at 60 Hudson Street, with over 300 collocated carriers, establishes a strong moat difficult for competitors to replicate.

The market for premium interconnect capacity is robust, driven by growth in AI and HPC workloads. Hudson’s ability to attract a major new AI-focused customer and expansion orders from existing clients demonstrates strong market resonance. Although pricing and margin details were not disclosed, investors should monitor Hudson’s utilization and capacity deployment as indicators of pricing strength in this segment.

Cordiant Digital Infrastructure’s Portfolio and Investment Strategy

Cordiant Digital Infrastructure Limited, listed on the London Stock Exchange under ticker CORD and a FTSE 250 constituent, specializes in owning and operating digital infrastructure. The company raised £795 million in equity and €375 million in debt to fund six acquisitions: CRA, Hudson, Emitel, Speed Fibre, Belgian Tower Company, and Datacentre United. These assets span data centres, fibre networks, telecom, and broadcast towers across Europe and North America. Cordiant follows a Buy, Build & Grow model targeting stable, often index-linked income with growth potential.

Hudson is a key growth asset within this diversified portfolio, showcasing Cordiant’s ability to scale premium digital infrastructure platforms in high-demand markets. Cordiant Capital Inc’s dedicated digital infrastructure team, Cordiant Digital Infrastructure Management (CDIM), comprises 21 professionals with extensive investing and operating experience. Their strategy focuses on acquiring and expanding cash-flowing digital infrastructure platforms in Europe, North America, Australia, and New Zealand. Hudson’s progression toward breakeven validates this approach and demonstrates value creation for investors.

Investor Outlook and Upcoming Milestones

Investors should note key upcoming milestones: billing under the new contract is expected to begin in September 2026, marking initial revenue from this major deal. Full deployment of the 1.8MW capacity is targeted for December 2026, at which point Hudson’s sixth floor should reach approximately 80% utilization of saleable capacity. The announcement also indicates ongoing interest in the remaining 0.7MW of capacity, suggesting potential for further growth.

The statement that Hudson is "significantly closer to breakeven" offers investors insight into operational progress, though the exact breakeven gap and profitability timeline remain undisclosed. The immediate share price impact was not evident from public information. Investors should monitor quarterly operational updates focusing on billing commencement and utilization trends toward the 80% target. Hudson’s potential to deliver over 10MW of total IT capacity at 60 Hudson Street signals multi-year growth opportunities if demand remains strong.