Megaport subsidiary Latitude.sh has secured a new customer for its compute and storage offering.

Revealed by the company on April 27, the agreement is with an unnamed US-based unlisted technology company and will run for 36 months.

The contract has a total estimated value of $25.1m, and will begin in the first half of 2027.

Latitude.sh will support the contract with approximately $12.2m in "incremental capital expenditure" on CPU servers. The order has already been placed, and the servers are expected to be delivered in FY2026.

Once the contract runs its course, Latitude.sh will retain ownership of the servers, adding them to the company's "compute pool" and will be available for either renewal from the same customer or to others via an on-demand platform.

“Securing a contract of this size reflects both the scale of the opportunities we see in the compute market and our disciplined approach to deploying capital,” said Michael Reid, CEO of Megaport. “We will continue to evaluate similar opportunities, investing alongside committed customer demand at compelling paybacks, ensuring capital is deployed after rigorous analysis while supporting the long-term growth of these markets.

“The explosion in AI use cases is driving incredible demand for compute and storage, with CPUs remaining a critical component of the infrastructure that powers AI. As businesses increasingly seek flexible, high-performance automated infrastructure, Megaport is perfectly positioned to capture a growing share of this rapidly accelerating opportunity.”

According to Latitude.sh's website, the company is operating out of 23 data center locations globally. It has not been disclosed which data center the customer will lease capacity from.

The data centers span Buenos Aires, Argentina; Sydney, Australia; Sao Paulo, Brazil; Santiago, Chile; Bogota, Colombia; Frankfurt, Germany; Tokyo, Japan; Mexico City, Mexico; Amsterdam, the Netherlands; Singapore; London, UK; and Ashburn, Chicago, Dallas, Los Angeles, Miami, New York, and Silicon Valley, in the US. The company has teamed up with cloud gaming provider Boosteroid in Brazil.

Megaport is an Australian Network-as-a-Service provider with a global footprint. According to Megaport's website, the company works with some of the leading global service providers, data center operators, systems integrators, and managed services companies. The company was listed on the Australian Securities Exchange in 2015.

The company acquired Latitude.sh in November 2025 with plans to combine the two companies' offerings to create an Infrastructure-as-a-Service platform using Megaport's connectivity fabric and Latitude.sh's compute infrastructure.

According to Megaport, since the acquisition Latitude.sh has seen its compute annualized recurring revenue increase by 31 percent to $58.7 million from $45m by 31 December 2025.