Gorilla Technology Group (NASDAQ:GRRR) shares climbed 7% on Tuesday after the company announced a signed five-year contract for AI compute infrastructure valued at approximately $2.5 billion with a high investment-grade global technology customer.
The work will be carried out at the NeutraDC Batam data centre in Indonesia. The initial phase calls for around 1,000 B300 GPU servers, which the company says are expected to produce about $1.3 billion in revenue over the five-year term.
Gorilla outlined a targeted deployment timeline: the first tranche is aimed for September 2026, with a second tranche planned for December 2026. The company expects the remainder of the contracted deployment to be delivered during the first half of 2027.
On the financing side, Gorilla reported it has received debt financing offers that would cover roughly 70% of anticipated project costs. The company is engaging with banks and other financial institutions to settle on what it described as the optimal financing structure to support the project.
Executive comments
Jay Chandan, Chairman and CEO of Gorilla Technology, framed the deal as validation of the company's AI infrastructure approach, saying: "Gorilla’s AI infrastructure strategy is now moving from secured capacity to contracted revenue. This contract is a major validation of that strategy. This is not a pipeline story. This is not an aspiration. This is signed customer demand, secured data centre capacity, executable deployment timing and bankable economics."
The agreement will be hosted at NeutraDC Batam and builds on Gorilla’s previously announced strategic capacity agreement with NeutraDC.
Gorilla also said it intends to provide an updated financial outlook following completion of its internal planning and review process. The company characterized the contract as a significant acceleration of its AI infrastructure platform across Asia.
Summary
Gorilla Technology has secured a multi-year, multi-billion-dollar AI compute contract to be hosted at NeutraDC Batam, with phased deployments beginning in late 2026 and most remaining capacity delivered by mid-2027. The deal includes an initial tranche of about 1,000 B300 GPU servers expected to drive roughly $1.3 billion in revenue over five years, and financing offers that could cover about 70% of project costs.
Key points
- The contract is a five-year AI compute infrastructure agreement worth approximately $2.5 billion.
- Initial deployment targets roughly 1,000 B300 GPU servers, projected to generate about $1.3 billion in revenue over five years.
- Deployment schedule: first phase targeted September 2026, second tranche December 2026, remaining capacity delivered in the first half of 2027.
Risks and uncertainties
- Financing is not finalized - while debt offers cover about 70% of expected project costs, Gorilla is still negotiating with banks and institutions to determine the final structure.
- Execution timing - the deployment schedule targets specific windows in late 2026 and the first half of 2027; meeting those milestones is necessary to realize the projected revenues.
- Dependence on a single large contracted customer - the agreement is with a high investment-grade global technology customer; the revenue profile relies on successful delivery to that customer.