Megaport subsidiary secures trio of contracts worth $254m

Megaport, a Queensland-headquartered automated infrastructure platform, has announced that its wholly owned subsidiary Latitude.sh has secured three major GPU, CPU, network and storage contracts across a pair of customers.

The contracts represent a combined total contract value (TCV) of approximately US$182.9 million (A$254 million), representing approximately US$65.2 million (A$90.6 million) in Annualised Recurring Revenue.

Two of the contracts, representing approximately 90% of the TCV, have 36-month initial terms, while the third contract has a 24-month contract term.

Both companies are US-based technology providers running AI applications and inference workloads, supported by institutional shareholders; one is an existing Megaport customer.

The combination of Megaport’s foundational network infrastructure automation with Latitude.sh's compute and storage capabilities has created a global automated infrastructure platform, enabling the combined group to pursue and secure new value-accretive opportunities, Megaport stated.

The company's global platform spans more than 1,100 data centre locations and claims to deliver rapid deployment, ultra-low latency, and dedicated high-performance infrastructure.

Since the acquisition of Latitude.sh last year, Megaport has assessed and continues to evaluate a "significant and increasing number"of comparable opportunities enabled by its automated global infrastructure capabilities. 

“As use cases shift from AI foundation models to inference and the edge, Megaport is becoming an essential platform for powering the applications of tomorrow with globally distributed, automated infrastructure,” said Michael Reid, CEO of Megaport.

“Whether supporting AI, edge compute, or anyone requiring instant global reach and performance, Megaport is a one-stop platform for the AI ecosystem, providing on-demand, software-enabled performance of dedicated hardware with the flexibility of a global network.”

The contracts require approximately US$101 million (A$140.3 million) in incremental capital expenditure primarily for high-performance NVIDIA GPU, compute, network, and storage hardware.

Megaport will fund that via a combination of existing cash reserves and available capacity under a committed, newly-upsized AUD$150 million debt facility from a global financial institution. 

Megaport saw its ARR for the Megaport Group rising 49% year on year to $338 million in H1 FY26.