(Bloomberg) -- Infratil Ltd, a New Zealand-based investor in data centers and renewable energy, expects increasing use of artificial intelligence in those sectors to boost full-year earnings.

Operating earnings will rise to between NZ$980 million ($598 million) and NZ$1.03 billion in the year through March 2025, the company said Tuesday in Wellington. That’s up from NZ$908 million for the 2024 financial year reported today, a gain of at least 8%.

Infratil has 80% of its assets in companies such as local telecommunications firm One New Zealand and data center operator CDC, as well as businesses building solar and battery systems in the US and Southeast Asia. It expects demand in both sectors to grow amid the increased use of AI.

“As AI development accelerates, the need for robust, scalable data centers powered by renewable energy becomes increasingly critical,” said Chief Executive Officer Jason Boyes. 

Infratil invested NZ$1.7 billion across its portfolio in the year through March and projects capital expenditure of NZ$2.7 billion to NZ$3.1 billion in the current financial year.

“We remain excited about the investment opportunities within our existing portfolio,” said Boyes. “These opportunities are expected to surpass our available capital, enabling us to focus on the highest value investments for our shareholders.”

The capital spending projection includes as much as A$2.65 billion ($1.8 billion) for CDC, which has eight data centers under construction across Australia and New Zealand.

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