On 3 Jun 2026, Megaport Limited (ASX: MP1) announced four new AI infrastructure contracts with a combined Total Contract Value of A$458.9M. To fund these contracts and build its GPU Pool, the Company launched a fully underwritten accelerated non-renounceable entitlement offer to raise A$827.3M.
Figure 1: Megaport corporate logo and brand identity. [Courtesy: Megaport]
This is not a modest pivot. Megaport is positioning itself as the go-to platform for globally-distributed AI inference infrastructure, and the capital raise is the mechanism that gets it there.
Four New Contracts and a Brand-New GPU Pool
The Contracts Megaport Just Signed
Megaport confirmed four new committed contracts with US-based technology providers running AI inference workloads. The contracts carry a combined TCV of approximately US$330.4M (A$458.9M) and an ARR of US$143.3M (A$199.0M). About 55% of ARR and 70% of TCV come from contracts with 36-month terms.
Delivery of all hardware is expected in FY27, with deployment commencing on a phased basis once delivered. It is anticipated that the full ARR contribution will be added on a run-rate basis by the end of H1 FY27.
The Capital and What It Funds
As detailed in the Megaport ASX MP1 investor presentation 2026, new shares will be issued at A$14.30 per share. This implies a 10.9% discount to the Theoretical Ex-Rights Price of A$16.04 per share and a 13.9% discount to the last closing price of A$16.61 per share on 1 Jun 2026. About 57.9M new shares will be made available, equal to about 32.5% of the issued Megaport shares currently in circulation.
Proceeds from the entitlement offer will be deployed as follows:
- A$369.5M for high-performance NVIDIA GPUs, compute, network, and storage to service new contracts
- A$350.0M for GPUs added to the GPU Pool for on-demand usage
- A$88.5M for balance sheet capacity and near-term customer growth
- A$19.3M in transaction costs
Why the AI Inference Opportunity Is So Large
GPU Demand Is Outpacing Supply Fast
Here is the thing about AI inference that most people outside the sector miss. Training an AI model requires enormous, concentrated GPU clusters in a single location. Inference, which is the process of actually using those trained models to generate responses for real users, works differently.
Inference GPUs can be distributed across multiple locations. They work in existing lower-density, air-cooled data centres. They sit close to the customers they serve, connected via a network. That is what makes Megaport’s existing footprint so relevant here.
Figure 2: Rising global demand for AI inference infrastructure and GPU capacity. [Courtesy: Megaport]
According to data from McKinsey and Company, global data centre demand for AI inference is projected to grow at an estimated 35% compound annual growth rate from 2025 to 2030. Prospective Latitude.sh customers are already routinely requesting GPU access, and lead times for each GPU order placed are stretching past 12 weeks.
Figure 3: AI inference enables distributed deployment compared to centralised AI training. [Courtesy: Megaport]
Megaport Has Already Solved the Hard Part
Three things slow down AI inference deployments for most providers: data centre space and power, robust network connectivity, and access to GPUs. Megaport has addressed the first two through its existing platform.
As at 29 May 2026, the Company operates across more than 1,100 data centres in 31 countries, with over 330,000 km of fibre routes, more than 3,000 network devices, and more than 11,000 CPUs and GPU chips currently deployed. That existing footprint is not incidental to the strategy. It is the strategy.
GPU Pool: How It Works in Practice
The On-Demand Model Behind the AI Inference Push
The Company is establishing an on-demand GPU Pool, backed by US$252.0M (A$350.0M) of investment. This pool will give enterprise customers immediate access to high-performance GPUs without the usual deployment lead times. It will be commercialised through consumption-based pricing on hourly and monthly models.
Figure 4: Megaport’s GPU Pool model and expected deployment metrics. [Courtesy: Megaport]
The GPU Pool serves three core objectives:
- Attract new customers seeking immediate access to AI inference infrastructure
- Provide existing customers with flexible burst capacity beyond contracted terms
- Create a pathway to convert short-term usage into longer-term committed deployments
The GPU Pool indicative metrics are as follows. Time to procure and deploy sits at 6 to 9 months. Ramp from deployment to optimal utilisation is 3 to 6 months. The payback target after reaching optimal utilisation is 16 to 22 months.
Megaport’s Trading Update and FY26 Guidance
Strong Momentum Across Both Divisions
Megaport’s Network division continues to perform well. As at April 2026, Network ARR reached A$277.7M, up 25% year-on-year on a constant currency basis. Network Net Revenue Retention by logo climbed to 113%, up 4 percentage points year-on-year.
On the compute side, Compute ARR excluding strategic contracts grew 40% to A$83.9M since the Latitude.sh acquisition. Including the strategic contracts, pro forma Compute ARR is A$385.2M, a 6.4x increase since the Latitude.sh acquisition. The strategic contracts contribute A$747.8M of TCV and A$301.3M of ARR. Combined Group pro forma ARR is A$662.9M.
FY26 Guidance Tightened
In FY26, Megaport tightened its revenue guidance range upwards, which guided to a revenue target between A$307M and A$315M, within this range, reflecting solid momentum in the Network business.
For EBITDA margin guidance is 21 to 24% of revenue. FY26 Group Capex guidance is also unchanged, A$90 million to A$100 million excluding strategic initiatives.
About Megaport
Megaport is an automated, global network infrastructure as a service platform based in Brisbane, Australia. Through its Network-as-a-Service platform, the Company is providing software-driven connectivity across 1,100-plus enabled data centres globally in 31 countries.
Figure 5: Megaport’s global infrastructure footprint spanning 1,100+ data centres across 31 countries. [Courtesy: Megaport]
Megaport completed the acquisition of Latitude.sh in November 2025. Bare-Metal Cloud Provider, which it uses as the base for its compute business. Megaport is ISO/IEC 27001 certified and trades on the Australian Securities Exchange under the ticker ASX: MP1. The Megaport ASX MP1 investor presentation 2026 is available on the ASX market announcements platform.
Megaport Share Price
Megaport Limited (ASX: MP1) share price details as at 3 Jun 2026:
- Last traded price: A$16.610 per share
- 52-week range: A$6.400 to A$17.870 per share
- Market capitalisation: approximately A$2.95 billion
- New share offer price: A$14.30 per share
- Discount to last close: 13.9%
- Discount to TERP: 10.9%
Figure 6: Megaport (ASX: MP1) one-year share price performance. [Courtesy: ASX]
Industry Outlook: Network-as-a-Service in Australia
Megaport’s AI inference ambitions are supported by a provider becoming involved in a rapidly growing sector within Network-as-a-Service, cloud infrastructure, and AI infrastructure. According to IMARC Group, it was US$450.5M in 2025 and is expected to reach US$2,959.9M by 2034. This translates to a compound annual growth rate of 22.57% the next eight years. The numbers are significant, and the direction is unmistakable.
Figure 7: Australia Network-as-a-Service market forecast, 2025–2034. [Courtesy: IMARC Group]
For investors following the ASX technology, this transition from capital-intensive legacy networks to flexible subscription-based infrastructure, the increase of multi-cloud strategies, expanding remote workforces and fast-growing requirements for AI-compatible connectivity are driving rapid acceleration in projects.
Figure 8: Australia Network-as-a-Service market share by application, 2025. [Courtesy: IMARC Group]
The timing of this entitlement offer and GPU Pool strategy is both intentional and fortuitously appropriate for a Company like Megaport, which finds itself seated at the junction of network and compute.
Future Direction and Impact on Megaport’s Revenue and Market Position
The entitlement offer and GPU Pool do not just fund today’s contracts. They shape what Megaport looks like as a business in 12 to 24 months. If GPU Pool utilisation ramps as expected and the four new contracts deliver full ARR by the end of H1 FY27, the Company’s pro forma revenue base will look materially different from what FY26 guidance currently reflects. The Megaport ASX share price outlook will likely follow that revenue trajectory closely.
Megaport MP1 growth strategy Australia mentions that the Company is exploring sovereign AI and enterprise AI markets globally, both of which require decentralised, jurisdiction-aware infrastructure. Megaport’s Globally-Distributed AI Inference Cloud is built precisely for that need. On a pro forma basis as at 31 December 2025, available liquidity sits at A$287.6M, providing the Company with balance sheet flexibility alongside the proceeds of the raise.
Over the medium term, Megaport expects continued investment in storage, network, and CPUs to expand its distributed footprint and support capacity build-out associated with recent announcements.
FAQs
Q1. What is Megaport’s entitlement offer?
Ans. It is a fully underwritten 1-for-3.08 pro rata non-renounceable offer to raise A$827.3M, announced on 3 Jun 2026. New shares are priced at A$14.30 per share.
Q2. What is the GPU Pool that Megaport is establishing?
Ans. The GPU Pool is an on-demand pool of high-performance GPUs backed by A$350.0M of investment. It gives enterprise customers immediate access to AI inference infrastructure through hourly and monthly pricing models.
Q3. Who are the customers behind the new contracts?
Ans. All four customers are US-based technology providers running AI applications and inference workloads, supported by institutional shareholders. Their identities have not been disclosed for competitive reasons.
Q4. When does the Retail Entitlement Offer open and close?
Ans. The Retail Entitlement Offer opens at 9:00 am Sydney time on 11 Jun 2026 and closes at 5:00 pm Sydney time on 29 Jun 2026.
Disclaimer
This article is meant only for informational purposes. If you are an investor who is watching Megaport closely, all the data published in the content is sourced from ASX announcements and external sources. Kindly verify all the information related to the share price and market data. Any investment should be made at the investor’s own risk. Colitco does not hold any position in the above-mentioned company.
Sources
https://data-api.marketindex.com.au/api/v1/announcements/XASX:MP1:2A1675190/pdf/inline/investor-presentation?_gl=1*jexhlz*_ga*MTcwODQzODA4Ni4xNzYyMjUxMTk2*_ga_R504V9JPBH*czE3ODA0NDczMjAkbzE0OSRnMSR0MTc4MDQ0NzU0NiRqNTAkbDAkaDA.
https://www.imarcgroup.com/australia-network-as-a-service-market
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
