Megaport has announced a new portfolio of major infrastructure contracts secured through its wholly owned subsidiary, Latitude.sh.
The three contracts cover GPU and CPU compute, network, and storage capacity for multiple customers, with each contract providing committed revenue over its fixed term, independent of customer usage.
The contracts represent a combined total contract value (TCV) of approximately USD$359.4 million (AUD$506.2 million), representing approximately USD$91.7 million (AUD$129.2 million) in Annualised Recurring Revenue (ARR).
All the customers are US-based technology providers supported by institutional shareholders; the identity of the customers has not been disclosed for competitive reasons.
The contracts require approximately USD$207.2 million (AUD$291.8 million) in incremental capital expenditure, primarily for high-performance NVIDIA GPU, compute, network and storage hardware. Megaport will fund this incremental capital expenditure from available liquidity.
At the end of each contract term, the assets will be deployed within the Latitude.sh compute pool and will be available to generate revenue for their remaining asset life, either as a contract renewal by the existing customers or as part of the on-demand platform.
In June, the company announced a globally-distributed AI inference cloud, of which an on-demand GPU Pool will form a foundational component, providing enterprise customers with access to high-performance GPUs, alongside the CPU, memory, storage, and networking infrastructure required to support production AI inference deployments.
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