Sharon AI lands $373m cloud deal, contracts 120MW capacity

Sharon AI has locked in 120MW of its 132MW AI Factory capacity through a five-year, $373 million cloud computing agreement with an unnamed global AI platform, as Asia-Pacific demand for sovereign AI compute accelerates.

"This agreement represents an important milestone in the continued expansion of Sharon AI's customer base and contracted AI infrastructure capacity," James Manning, co-founder and chief executive officer of Sharon AI, said.

Revenue under the agreement is expected to begin in the first quarter of 2027. The initial deployment will use 2,048 NVIDIA Blackwell Ultra B300 GPUs, with additional deployments possible over the contract term. Sharon AI plans to expand its GPU fleet from 62,000 to 64,000 units by mid-2027.

The deal strengthens Australia's bid to become a regional AI infrastructure hub, giving global platforms access to high-performance compute while supporting domestic AI development. For Sharon AI, the contract provides multi-year revenue visibility and confirms its strategy of securing long-term customer commitments as it scales its AI Factory platform.

The agreement follows a pattern of long-duration infrastructure contracts reshaping the neocloud sector. CoreWeave, the largest US neocloud, has signed multi-billion-dollar compute leases with Microsoft and OpenAI, while Australia's emerging AI infrastructure market has drawn investment from Amazon Web Services and Microsoft Azure, which have announced data center projects in the country.

Sharon AI's 132MW AI Factory capacity places it among the larger independent compute providers in the region. The company's 120MW of contracted capacity represents a 91 percent utilization rate, a level that typically indicates strong pricing power in the data center industry. For context, 120MW can power roughly 100,000 average Australian homes.

The NVIDIA Blackwell Ultra B300 GPUs slated for initial deployment represent the latest generation of Nvidia's data center accelerators. The B300 follows the H100, which Nvidia has shipped in volume to hyperscalers and neoclouds since 2023. Nvidia's data center revenue reached $115.2 billion in fiscal 2025, according to the company's annual results, driven by demand from AI infrastructure builders including Sharon AI, CoreWeave, and Nebius.

Sovereign AI Compute Draws Global Demand

Australia's push to host AI infrastructure domestically reflects a broader trend across the Asia-Pacific. Governments from Singapore to Japan have introduced incentives for data center development, citing data sovereignty and national security concerns. Sharon AI's positioning as a sovereign AI infrastructure provider differentiates it from US-based competitors that may face cross-border data restrictions.

The stock reacted positively to the announcement, with SHAZ gaining 9.39 percent to trade at $57.30. The move reflects investor confidence in the company's ability to convert its AI Factory capacity into contracted revenue.

Sharon AI's contract win comes as the neocloud sector faces competition from hyperscalers entering the compute leasing market. Meta Platforms has explored leasing its excess AI compute capacity, and Microsoft has expanded its Azure AI infrastructure. For investors, the key question is whether Sharon AI can maintain pricing power as capacity expands and competition intensifies. The company's 91 percent contracted capacity rate suggests strong demand, but the unnamed customer and the 2027 revenue start date leave execution risk. SHAZ trades at a premium to larger neocloud peers given its contracted revenue backlog, yet the stock's 9.39 percent jump on this announcement suggests the market had not fully priced in the deal.

This article is for informational purposes only and does not constitute investment advice.