Morrison in exclusive talks on Orange's French data centres

At a glance

• Orange would contribute five French data centres to a 50/50 venture with New Zealand's Morrison, which would put in the equity.

• A €3 billion programme, funded by the contributed assets, Morrison equity and debt, would take those data centres to 400MW.

• Sumitomo Mitsui Trust Bank agreed on 7 July 2026 to take 15 per cent of Morrison, in what Morrison called growth capital.

• Morrison manages more than US$30 billion and would have data centre platforms under management in four countries: Australia, New Zealand, the United Kingdom and France.

• Orange and Morrison expect to sign by the end of 2026 and close in the first quarter of 2027, subject to staff consultation and regulatory approvals.

Orange would put five data centres into a 50/50 venture

Orange frames the venture as strengthening Europe's digital sovereignty. The equity behind it would come from Wellington.

Orange would contribute five of its French data centres to a new company, take half of it and stay on as a customer. New Zealand's Morrison would take the other half.

With this venture Morrison would have data centre platforms under management in four countries. The venture's 400MW target is four times the 98MW CDC has operating in Auckland.

The two companies announced an exclusivity agreement on 27 July 2026 to create the company on a 50/50 basis. The five data centres sit across four campuses at Chevilly-Larue, Aubervilliers, Chartres and Val-de-Reuil.

A €3 billion programme would take the platform to 400MW, which Orange describes as nearly ten times its current capacity. The money would come from the contributed assets, Morrison's equity and debt.

Orange calls the arrangement a contemplated partnership throughout its announcement, and the exclusivity agreement covers negotiations only. Signing is expected by the end of 2026, subject to consultation with employee representative bodies and to regulatory approvals the release does not itemise. Closing is expected in the first quarter of 2027.

Orange group chief executive Christel Heydemann said France will need sovereign, trusted digital infrastructure to meet demand from cloud and artificial intelligence. The venture, she said, would let Orange unlock the value of its existing assets. Morrison chief investment officer William Smales said Europe's digital future will require significant new investment in trusted infrastructure, and called France exceptionally well positioned in Europe's digital economy.

Morrison already has data centres in Australia, New Zealand and the UK

Morrison was established in Wellington in 1988 and manages more than US$30 billion of investments, on its own figure at 31 March 2026. Its data centres are held through Infratil, the listed New Zealand company Morrison manages. Infratil holds 49.7 per cent of CDC and 55 per cent of Kao Data in the United Kingdom. It bought into Kao Data in 2021, paying £120 million to £130 million for an initial 40 per cent.

Source: Infratil disclosures and the Orange announcement, 27 July 2026.

CDC operates three Auckland campuses: Silverdale Campus One and Hobsonville Campuses One and Two. On CDC's own figures they carry 22MW, 22MW and 54MW of operating capacity, against a planned Auckland total above 220MW. In Australia, CDC was independently revalued at a midpoint of A$18.5 billion on 6 July 2026, up 23.6 per cent over the June quarter.

Sumitomo Mitsui Trust to take 15 per cent of Morrison

Sumitomo Mitsui Trust Bank agreed on 7 July 2026 to subscribe for new equity in Morrison for a 15 per cent shareholding. The bank also put an initial US$500 million into two Morrison funds, one holding infrastructure already running and one holding projects still being built. The two firms agreed separately to raise money for each other's funds, which Sumitomo Mitsui Trust Group's filing says is aimed at US$1.5 billion.

Morrison put the whole package at more than US$2 billion. It called the Japanese bank's stake growth capital, and said the Lloyd Morrison Trust's holding and its staff's ownership are unchanged. Morrison chief executive Paul Newfield said Japanese investors are treating infrastructure as a priority. Sumitomo Mitsui Trust Group's filing says the closing date is not settled and still needs regulatory approval, and both sides expect to close before the end of 2026.

What to watch

The reported Optus talks. The Australian Financial Review reported on 29 July 2026 that Singtel was in exclusive talks with Morrison over more than 30 per cent of Optus, valued at more than A$2 billion. Singtel confirmed discussions with interested parties without naming a counterparty, and said it will make an announcement if and when there are material developments that warrant disclosure.

CDC's Auckland build-out. CDC's Auckland estate runs from 98MW operating to a planned total above 220MW, one of the programmes in New Zealand's data centre build running under investment principles the New Zealand government began developing in July 2026.