Sharon AI Lands $373M AI Cloud Deal in Australia
Synopsis
The five-year agreement lifts Sharon AI's contracted AI Factory capacity to 120MW, with revenue starting in early 2027 and the company scaling to 64,000 Nvidia Blackwell Ultra GPUs.
Australian-based Sharon AI (ASX:SHA) has entered a five-year cloud computing services contract with an unnamed global artificial intelligence platform, further expanding its footprint in the country's AI computing capacity as demand for the services grows.
The Sharon AI Australia cloud deal adds 120 megawatts (MW) of contracted AI Factory capacity to the firm's total capacity of 132MW, which would leave 12MW available for future clients. The revenue of the agreement is anticipated to start in Q1 2027.
It will initially feature 2,048 NVIDIA Blackwell Ultra B300 AI training and inference graphics processing units (GPUs). Sharon AI has announced it will expand its targeted deployment of AI infrastructure from 62,000 GPUs to 64,000 by mid-2027 after the agreement.
Australian AI Infrastructure Continues to Expand
The Sharon AI Australia cloud deal follows Australia’s growing investment in sovereign AI infrastructure to enable organisations to process data and run AI workloads within the country.
To address data residency and compliance needs, local infrastructure has become increasingly significant for businesses in regulated industries like finance, healthcare and government.
The deal also shows global investment in AI infrastructure. The Stanford AI Index Report 2025 shows that the United States continued to be the world's largest market for private AI investment in 2024, trailed by China and the United Kingdom.
As enterprise AI adoption picks up pace, other nations including Canada, Germany, France, Singapore, South Korea and Australia are also investing in AI research, computing infrastructure and data centre capacity.
Contract Adds to Growing Capacity Pipeline
Since the agreement, 120MW of Sharon AI's proposed 132MW AI Factory platform has already been contracted, with over 90% of the pipeline already secured. The remaining 12MW is available for future customer agreements.
Sharon AI has reported revenue of US$294,014 in the first quarter 2026 compared with US$325,092 in the same quarter of 2025, while the net loss also went up to US$20.01 million from US$1.44 million in the corresponding quarter of 2025.
The company reported that the income from the new contract will start once the infrastructure is deployed, in Q1 of 2027.
Source: IT Brief Australia
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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