Compute · Germany · Japan · Singapore · New York · Datacenter Dynamics
Latitude.sh signs $25.1m three-year AI capacity agreement with unnamed customer
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Megaport subsidiary Latitude.sh has secured a new customer for its compute and storage offering.
Key facts
- 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
- The contract has a total estimated value of $25.1m, and will begin in the first half of 2027
- Revealed by the company on April 27, the agreement is with an unnamed US-based unlisted technology company and will run for 36 months
- Latitude.sh will support the contract with approximately $12.2m in "incremental capital expenditure" on CPU servers
Summary
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. 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.