ASX tech company Megaport (ASX:MP1) share price hits all-time high

The demand for data centres and interconnectivity is growing rapidly.

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The Megaport Ltd (ASX: MP1) share price closed today at an all-time high.

Earlier in the day, Megaport shares touched a record high of $18.27 before settling to close at $18, up 2.27%.

What’s helped drive Megaport’s growth?

The company describes itself as a “global leading provider of elastic interconnection services”.

In a nutshell, Megaport allows its customers to connect their networks to other services across its platform. The company connects more than 2,100 customers in some 740 enabled data centres around the globe, with its customer base including some of the biggest players in the industry.

While many factors have helped push the Megaport share price to a new record high, the company has clearly benefitted from the rapid growth of cloud computing. That’s where your data is stored offsite in a data centre, rather than on your own facility’s servers.

Cloud computing demand has been growing steadily since the turn of the century. But the work, shop, and play from home trend spurred by COVID-19 mitigation efforts has accelerated the trend.

A recent Australian Bureau of Statistics report revealed that 55% of Australian businesses are now leveraging paid cloud computing, up from 31% in 2015–2016.

Megaport share price snapshot

Megaport shares have gained around 40% over the past 12 months, compared to a lift of 21.75% on the S&P/ASX 200 Index (ASX: XJO).

Year to date, the Megaport share price has continued to outperform, up 26.32% so far in 2021.

Should you invest $1,000 in Megaport right now?

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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