Megaport Limited has announced approximately A$978.6 million in total contract value across three new AI infrastructure agreements, marking a significant acceleration in the company’s exposure to the high-growth AI compute market. The announcement also includes a substantial upgrade to FY27 guidance, signaling strong momentum beyond just these new contracts.
The three agreements, secured through Megaport’s wholly owned subsidiary Latitude.sh, represent a vote of confidence in the company’s ability to serve hyperscalers and AI-focused customers at scale. Two of the customers are new to Megaport, supporting management’s stated strategy of broadening the customer base and reducing concentration risk. The contracts encompass GPU and CPU compute, network, and storage services tailored for AI applications and inference workloads. Most notably, one new customer has committed to a prepayment of approximately A$281.5 million to secure rapid access to already-ordered GPUs from Megaport’s pool, demonstrating the intensity of competition for GPU capacity in the current market.
The financial impact is substantial. These three contracts are expected to contribute approximately A$232.4 million in annual recurring revenue once deployed. Combined with agreements announced since April 2026, Megaport’s strategic contract announcements now total approximately A$2.3 billion in TCV. Management estimates that pro forma Group ARR will reach approximately A$1.1 billion once these contracts are deployed, with over 85 percent of ARR derived from North America. The company’s current Network ARR stands at A$302.6 million as at August 2026, up 29 percent on a constant currency basis year-on-year. Compute ARR has grown particularly quickly, reaching A$201.4 million as at mid-September, representing growth of 90 percent since June 30 and 227 percent since the Latitude acquisition.
The upgraded FY27 guidance reflects this momentum. Management now expects Group Revenue between A$720 million and A$810 million, up from a prior range of A$620 million to A$730 million. More impressively, the EBITDA margin guidance has been raised to 42 to 44 percent from 38 to 40 percent, suggesting that Megaport expects to maintain pricing discipline and achieve meaningful operating leverage even as it deploys these large contracts. Capital expenditure guidance has been increased to A$1.78 billion to A$1.88 billion to support both new contract deployment and GPU pool replenishment. Despite this elevated capex, management notes that the company is fully funded, with pro forma liquidity of approximately A$362.2 million.
Investors should watch for early execution on these new contracts and customer adoption momentum over the coming quarters. Megaport’s Network Net Revenue Retention of 116 percent in August, up 6 percentage points year-on-year, suggests strong retention and expansion within the existing customer base. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Megaport Limited (ASX: MP1)
Megaport Limited is a software-defined network service provider that offers Network as a Service (NaaS) solutions enabling enterprises to connect to cloud providers, data centers, and internet exchanges on a flexible, pay-as-you-go basis. The company operates a global interconnection platform connecting approximately 3,000 enterprise customers across over 1,000 data centers worldwide. Megaport’s Marketplace enables businesses to access multiple cloud and IT service providers without relying on the public internet.
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