Cloud provider DigitalOcean has revealed that it has secured multiple contracts worth hundreds of millions of dollars in annual customer commitments.

The company stated that these new contracts have been secured during its second quarter of fiscal year 2026, and the company is projecting a remaining performance obligation of more than $800 million ahead of the quarter's earnings report, a growth of more than ten times that in Q2 2025.

While details about the contracts - including the quantity, customer names, and value - have not been shared, according to previous filings, the companies' remaining performance obligation as of March 31, 2026, was $243m, showing an increase of at least $557m.

“We continue to win the world’s most sophisticated AI customers, and demand continues to accelerate. Customers recognize the differentiation of our AI-Native Cloud platform, appreciate how easy we make it to scale their businesses, and seek the total cost of ownership advantage that we provide them,” said Paddy Srinivasan, CEO of DigitalOcean. “By working directly with our customers to build capabilities, such as our Inference Router that balances price and performance across both closed and open source models, we continue to extend our software advantage and further separate ourselves from bare-metal GPU rental companies.”

In addition to the customer contracts, DigitalOcean has also secured 20MW of new data center capacity that will come online in late 2027 and early 2028, bringing its total footprint to 155MW. While the location of this capacity has not been shared, the company's 2025 Annual Report states that it leases space at third-party data centers in the United States, India, Germany, the United Kingdom, Canada, the Netherlands, Singapore and Australia.

DigitalOcean, while a smaller cloud platform than those operated by the US hyperscalers, has been seeking to expand its offerings, and in March 2026 was looking to raise $800 million in an underwritten offering. The company said at the time that it would use the funding to invest in additional capacity "beyond what it has already communicated," which will in turn help the company to meet demand for its cloud and AI platform. Additionally, the funding will help to pay down its existing loan and for "general corporate purposes."

The company is projecting a Year-on-Year (YoY) revenue growth of 29 percent for its current quarter.