Australia's Megaport secures four new AI infrastructure contracts, to raise $594 million

• The four contracts require nearly A$369.5 million in capital expenditure, primarily for high-performance NVIDIA GPUs, network and storage infrastructure
• Megaport will establish an on-demand GPU pool backed by $350 million in investment, offering enterprise customers AI infrastructure through contracted and consumption-based pricing models
• The company tightened its 2026 revenue guidance to A$307-315 million from the previous A$302-317 million range, reflecting strong momentum in its network business

Summary

Key Development: Australian network infrastructure provider Megaport announced Wednesday it has secured four AI infrastructure contracts worth A$458.9 million ($329.49 million) and launched a fully underwritten equity raise of A$827.3 million ($594 million).

Contract Details:

• Four contracts with U.S.-based technology providers running AI applications
• Expected start date: first half of 2027
• Required capital expenditure: A$369.5 million, primarily for NVIDIA high-performance GPUs, network, and storage infrastructure

Strategic Initiative:

Megaport plans to establish a globally-distributed AI inference cloud featuring an on-demand GPU pool backed by $350 million in investment. The service will target enterprise customers through contracted and consumption-based pricing models, addressing growing demand for immediate AI infrastructure access.

Financial Outlook:

The company tightened its fiscal 2026 revenue guidance to A$307-315 million, up from the previous range of A$302-317 million, citing strong momentum in its network business.

The entitlement offer is priced at A$14.30 per share.

Market Context:

CEO Michael Reid characterized AI inference as "one of the biggest infrastructure opportunities of the next decade," highlighting accelerating AI adoption and enterprise need for seamless access to GPUs, CPUs, storage, and connectivity.

Implications:

This move positions Megaport to capitalize on surging AI infrastructure demand while requiring significant capital investment. The contracts and capital raise signal strong institutional confidence in the AI infrastructure buildout trend, particularly around inference computing capabilities essential for running AI applications at scale.