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The Brief:

  • Megaport raises $827m through a fully underwritten entitlement offer to build a globally distributed AI inference cloud.

  • Gilbert + Tobin acts as lead legal counsel, led by partner Adam D’Andreti.

Megaport is going big on AI infrastructure.

The ASX-listed technology company has launched one of Australia’s biggest equity raises of 2026 — a fully underwritten $827m entitlement offer, priced at $14.30 per share. The proceeds will fund four new AI infrastructure contracts and build a pool of Nvidia GPUs to be rented out to customers processing AI queries.

Gilbert + Tobin acted as lead legal counsel across all aspects of the transaction.

The deal

Megaport has built a virtual network connecting more than 1,100 data centres worldwide. The GPU pool will sit across that network, giving technology giants access to AI chips for inference — letting AI models answer queries and act on prompts, rather than training them.

Proceeds are split across $370m in capex tied to the four new US-based AI customer contracts, collectively worth $458.9m, a further $350m on the GPU pool, with up to $90m held as balance sheet cash. Those contracts are expected to deliver around $200m in annualised revenue from mid-2027.

At $827m, it’s the second biggest follow-on equity sale by an Australian company this year, behind NextDC’s $1.1bn raise in April. The raise lands as Australia cements itself as a global data centre destination, with companies investing $8.7bn in data centres in the March quarter alone.

The raise follows Megaport’s acquisition of Latitude.sh, which gave the company the compute, storage and network foundations underpinning the new deals.

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“AI inference represents one of the biggest infrastructure opportunities of the next decade. The contracts announced today reflect the accelerating demand for globally-distributed AI inference infrastructure.”

Megaport CEO Michael Reid

Who’s acting

Gilbert + Tobin advised Megaport across all aspects of the transaction, led by partner Adam D’Andreti, with support from Sean Meehan, Laura Worrad, Matthew Harrington, Hayden Rayen and Francis Burfitt. G+T also advised on the Latitude.sh acquisition and its associated raise.

D’Andreti said: “This is a huge moment for Megaport and a clear signal of how quickly capital is moving into AI infrastructure globally.”

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