Megaport raises $594M for AI cloud, secures four new deals

Australia's Megaport announced on Wednesday that it has secured four new AI infrastructure contracts totaling A$458.9 million. To capitalize on the strong demand for AI-related facilities, the company also plans to raise A$827.3 million ($594 million) through an entitlement offer. These deals highlight the competitive landscape for infrastructure providers in the booming AI compute market, as companies seek access to scarce GPU capacity. Megaport aims to establish a globally distributed AI inference cloud, supported by a A$350 million investment in an on-demand GPU pool. The contracts, which are expected to commence in the first half of 2027, will require significant capital expenditure, primarily for Nvidia GPUs, network, and storage infrastructure. The company, which utilizes chips from Nvidia and AMD, leverages its extensive network of over 1,100 data centres across 31 countries to deliver AI compute closer to end-users. Megaport has also tightened its 2026 revenue forecast to A$307 million-A$315 million, reflecting positive momentum in its core network business. The entitlement offer involves issuing shares at A$14.30 each, a 13.9% discount to the stock's previous closing price. Megaport spent a decade as a company used to connect to other people's clouds, and on Wednesday announced a plan to become one. The company also announced the launch of Megaport Storage, expanding its platform to deliver integrated compute, network, and storage services.