Australia's Megaport rallies after bagging $687-million AI contracts
The words "AI Infrastructure", a keyboard and a robotic hand in this illustration taken September 23, 2026. REUTERS/Dado Ruvic/Illustration
Sept 29 : Australian network and cloud services provider Megaport said on Tuesday it won three AI infrastructure contracts worth about A$978.6 million ($686.88 million) and raised its annual earnings forecast, sending its shares nearly 21 per cent higher.
The new deals highlight Megaport's transformation into an AI infrastructure provider following its acquisition of Latitude.sh, as rising demand for graphics processing unit (GPU) computing fuels long-term technology spending.
The contracts, signed through Latitude.sh, are expected to add A$232.4 million in annual recurring revenue (ARR) once fully deployed.
The deals lift pro forma group ARR to about A$1.1 billion and bring the total value of strategic AI infrastructure contracts announced since April to roughly A$2.3 billion, including four similar deals worth A$458.9 million secured in early June.
"The test is now execution: installing the equipment on time, converting contracted value into revenue, and earning an adequate return on a much larger capital base," said Mark Gardner, founder and CEO of MPC Markets.
"Nearly a billion dollars of contract value is impressive. It is not a billion dollars of revenue today."
Shares of Megaport rose as much as 20.5 per cent to A$22.720, their highest since August 13, while the benchmark stock index was up 0.2 per cent.
Megaport, which uses Nvidia and AMD chips and operates across more than 1,100 data centres in 31 countries, also lifted its 2027 revenue forecast to A$720 million-A$810 million from A$620 million-A$730 million.
It also lifted its FY27 capital expenditure forecast to A$1.78 billion-A$1.88 billion from A$1.28 billion-A$1.38 billion to support the new contracts and replenish its GPU pool.
($1 = 1.4247 Australian dollars)
