Megaport spent a decade as a company you used to connect to other people’s clouds. On Wednesday it announced a plan to become one. The Australian networking firm secured four new AI infrastructure contracts worth a combined A$458.9M (about $329M) and launched a fully underwritten entitlement offer to raise A$827.3M (about $594M), according to its filing. The money funds a pivot from plumbing to compute.
The contracts come first. All four are with US-based technology providers running AI applications, are expected to start in the first half of 2027, and require nearly A$369.5M in capital expenditure, mostly for high-performance Nvidia GPUs alongside network and storage. That is a meaningful commitment for a company of Megaport’s size, and it explains why the raise is so large relative to the business.
What the capital is really buying is the strategy behind the contracts. Megaport says it will build a globally distributed AI inference cloud, anchored by an on-demand GPU pool backed by about A$350M in investment and offered to enterprise customers on both contracted and consumption-based pricing.
The pool is to be deployed across the company’s existing footprint of more than 1,100 connected data centres in 31 countries, with rollout over the next six to nine months.
