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Australian Small-Cap AI Stocks Gain Momentum as Global AI Spending Rises
Artificial‑intelligence spending is projected to hit $2.6 trillion worldwide by 2026, with software purchases alone topping $450 billion this year and infrastructure spending expected to exceed $1.4 trillion. The surge is driving fresh capital outlays for data‑centre capacity, cloud services and software platforms.
In Australia, the ASX small‑ and mid‑cap universe is increasingly populated by firms that build the software, cloud and data‑centre solutions poised to benefit from the AI boom. Five ASX‑listed companies—Megaport, Macquarie Technology Group, Dicker Data, NEXTDC and Data#3—have been highlighted for their exposure to AI‑related demand.
The Software‑as‑a‑Service (SaaS) model sits at the heart of this trend. Software companies can add new customers with relatively low incremental cost, generating recurring revenue streams that grow faster than operating expenses. When AI is layered on existing SaaS products, it boosts customer engagement and retention and lifts average revenue per user.
Megaport (ASX: MP1) operates a global Network‑as‑a‑Service platform that lets enterprises connect directly to cloud providers and data‑centres through software‑defined networking. In its FY25 results, Megaport reported annual recurring revenue of $243.8 million, up 20 % year‑on‑year, and an EBITDA of $62.3 million (adjusted to $57.0 million after foreign‑exchange and lease‑accounting adjustments). The company added 115 new data‑centre locations and grew high‑value enterprise accounts by 18 %. Product innovation accounted for roughly one‑quarter of the ARR growth.
Macquarie Technology Group (ASX: MAQ) offers a diversified digital‑infrastructure portfolio that includes data‑centres, cloud services, cyber‑security and telecommunications. Its IC3 Super West data‑centre in Sydney’s Macquarie Park is a 47 MW facility designed for GPU‑heavy AI workloads, featuring liquid cooling and direct‑to‑chip architecture. The project is on schedule to open in September 2026. Macquarie has increased its debt facilities to $500 million to accelerate capacity delivery and has secured options for a new campus that could add more than 150 MW. Group EBITDA for FY26 is guided at $114–117 million, with 95 % of revenue coming from recurring contracts.
Dicker Data (ASX: DDR) is one of Australia’s largest technology distributors. Its FY25 revenue rose to $3.88 billion, with net operating profit before tax of $124.7 million. Subscription and recurring revenue grew more than 22 % during the year, reflecting a shift toward cloud‑based services. Management cited strong demand for AI infrastructure deployments and the upcoming Windows 10 refresh cycle as drivers of technology spending.
NEXTDC (ASX: NXT) owns and operates a network of carrier‑neutral data‑centres that provide the physical infrastructure for cloud and AI workloads. The company secured a record 250 MW capacity commitment for its S4 facility in Western Sydney, pushing pro‑forma contracted utilisation to 667 MW. Its forward order book stands at 544 MW, expected to generate over $1 billion in contracted EBITDA through FY30. NEXTDC has lifted FY26 capital‑expenditure guidance to $2.7–3.0 billion, backed by $2.2 billion in new capital and $8.4 billion in pro‑forma liquidity.
Data#3 (ASX: DTL) delivers enterprise technology solutions, including software licensing, cloud services, cyber‑security and managed services. The firm’s focus on helping organisations implement and optimise solutions from major global vendors positions it to benefit from growing cyber‑security needs and cloud migration. AI adoption is still in early stages for many customers, creating opportunities for advisory and implementation services.
The AI boom remains in its early phases, with enterprise adoption expected to accelerate as productivity gains become clearer. The ASX small‑cap sector offers companies that can scale quickly through SaaS and infrastructure models, and that are positioned to capture demand from cloud, AI and digital‑transformation initiatives. Investors seeking exposure to AI‑driven growth may consider these firms, though each carries its own risks and uncertainties.
AI spending forecasts remain robust, and the five highlighted companies have shown recent financial performance that aligns with the broader trend. Upcoming earnings releases, capital‑expenditure plans and contract pipelines will provide further insight into how each firm capitalises on the AI momentum.
In Australia, the ASX small‑ and mid‑cap universe is increasingly populated by firms that build the software, cloud and data‑centre solutions poised to benefit from the AI boom. Five ASX‑listed companies—Megaport, Macquarie Technology Group, Dicker Data, NEXTDC and Data#3—have been highlighted for their exposure to AI‑related demand.
The Software‑as‑a‑Service (SaaS) model sits at the heart of this trend. Software companies can add new customers with relatively low incremental cost, generating recurring revenue streams that grow faster than operating expenses. When AI is layered on existing SaaS products, it boosts customer engagement and retention and lifts average revenue per user.
Megaport (ASX: MP1) operates a global Network‑as‑a‑Service platform that lets enterprises connect directly to cloud providers and data‑centres through software‑defined networking. In its FY25 results, Megaport reported annual recurring revenue of $243.8 million, up 20 % year‑on‑year, and an EBITDA of $62.3 million (adjusted to $57.0 million after foreign‑exchange and lease‑accounting adjustments). The company added 115 new data‑centre locations and grew high‑value enterprise accounts by 18 %. Product innovation accounted for roughly one‑quarter of the ARR growth.
Macquarie Technology Group (ASX: MAQ) offers a diversified digital‑infrastructure portfolio that includes data‑centres, cloud services, cyber‑security and telecommunications. Its IC3 Super West data‑centre in Sydney’s Macquarie Park is a 47 MW facility designed for GPU‑heavy AI workloads, featuring liquid cooling and direct‑to‑chip architecture. The project is on schedule to open in September 2026. Macquarie has increased its debt facilities to $500 million to accelerate capacity delivery and has secured options for a new campus that could add more than 150 MW. Group EBITDA for FY26 is guided at $114–117 million, with 95 % of revenue coming from recurring contracts.
Dicker Data (ASX: DDR) is one of Australia’s largest technology distributors. Its FY25 revenue rose to $3.88 billion, with net operating profit before tax of $124.7 million. Subscription and recurring revenue grew more than 22 % during the year, reflecting a shift toward cloud‑based services. Management cited strong demand for AI infrastructure deployments and the upcoming Windows 10 refresh cycle as drivers of technology spending.
NEXTDC (ASX: NXT) owns and operates a network of carrier‑neutral data‑centres that provide the physical infrastructure for cloud and AI workloads. The company secured a record 250 MW capacity commitment for its S4 facility in Western Sydney, pushing pro‑forma contracted utilisation to 667 MW. Its forward order book stands at 544 MW, expected to generate over $1 billion in contracted EBITDA through FY30. NEXTDC has lifted FY26 capital‑expenditure guidance to $2.7–3.0 billion, backed by $2.2 billion in new capital and $8.4 billion in pro‑forma liquidity.
Data#3 (ASX: DTL) delivers enterprise technology solutions, including software licensing, cloud services, cyber‑security and managed services. The firm’s focus on helping organisations implement and optimise solutions from major global vendors positions it to benefit from growing cyber‑security needs and cloud migration. AI adoption is still in early stages for many customers, creating opportunities for advisory and implementation services.
The AI boom remains in its early phases, with enterprise adoption expected to accelerate as productivity gains become clearer. The ASX small‑cap sector offers companies that can scale quickly through SaaS and infrastructure models, and that are positioned to capture demand from cloud, AI and digital‑transformation initiatives. Investors seeking exposure to AI‑driven growth may consider these firms, though each carries its own risks and uncertainties.
AI spending forecasts remain robust, and the five highlighted companies have shown recent financial performance that aligns with the broader trend. Upcoming earnings releases, capital‑expenditure plans and contract pipelines will provide further insight into how each firm capitalises on the AI momentum.
