en.Wedoany.com Reported - Cloud service provider DigitalOcean announced that it secured multiple annual customer commitment contracts totaling hundreds of millions of dollars in the second quarter of fiscal year 2026. The company expects its remaining performance obligations to exceed $800 million before the quarterly earnings release, representing a more than tenfold increase compared to the second quarter of 2025.

Although the specific number of contracts, customer names, and amounts have not been disclosed, according to previous filings, the company's remaining performance obligations stood at $243 million as of March 31, 2026, indicating that the new contracts contributed at least $557 million in growth.

DigitalOcean CEO Paddy Srinivasan stated that the company continues to win over the world's most complex AI customers, with demand accelerating. Customers recognize the differentiated advantages of its AI-native cloud platform, the ease of business expansion, and the total cost of ownership benefits. He also mentioned that by directly collaborating with customers to build capabilities—such as launching the Inference Router, which balances price and performance between closed-source and open-source models—the company continues to expand its software advantages, further distinguishing itself from bare-metal GPU leasing companies.

In addition to customer contracts, DigitalOcean also secured 20 MW of new data center capacity, scheduled to go online by the end of 2027 and early 2028, bringing the company's total capacity to 155 MW. The specific location of this capacity has not been announced, but the company's 2025 annual report shows that it leases third-party data center space in the United States, India, Germany, the United Kingdom, Canada, the Netherlands, Singapore, and Australia.

Although DigitalOcean is smaller than US hyperscale cloud platforms, it has been expanding its services. In March 2026, the company sought to raise $800 million through an underwritten offering, planning to use the funds to invest in additional capacity "beyond the announced scope" to meet demand for its cloud and AI platforms, while also repaying existing loans and for "general corporate purposes."

The company expects quarterly revenue to grow 29% year-over-year.