Digi Power X Secures Transformational $1.1B AI Data Center Colocation Agreement with Cerebras Systems
Summary
Digi Power X Inc. has entered into a definitive 10-year Master Services Agreement with Cerebras Systems for a 40 MW AI data center campus, valued at $1.1 billion initially with potential for $2.5 billion, marking a significant revenue driver.
Key Events
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Secures $1.1 Billion Initial Contract
Digi Power X Inc. entered into a 10-year Master Services Agreement with Cerebras Systems Inc. for a 40 MW AI data center, valued at approximately $1.1 billion for the initial term.
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Potential for $2.5 Billion with Extension
The agreement includes extension options that could increase the total contract value to approximately $2.5 billion, providing significant long-term revenue visibility.
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40 MW AI Data Center Development
The company will develop a purpose-built 40 MW AI data center campus in Columbiana, Alabama, optimized for high-density AI compute requirements.
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Phased Deployment by Q1 2027
Deployment is planned in two phases: Phase 1 (15 MW) targeted for December 15, 2026, and Phase 2 (additional 25 MW) targeted by the end of Q1 2027, with Phase 2 contingent on securing financing.
Analysis
Digi Power X Inc. has filed an 8-K to formalize a highly significant Master Services Agreement with Cerebras Systems Inc., previously announced in a news release on May 5, 2026. This definitive agreement outlines a 10-year initial term for a 40 MW AI data center campus in Alabama, valued at approximately $1.1 billion. With potential extensions, the total contract value could reach $2.5 billion. This contract is transformational, representing over five times the company's current market capitalization, and provides substantial long-term revenue visibility. The agreement details a phased deployment, with Phase 1 (15 MW) targeted for December 2026 and Phase 2 (additional 25 MW) by Q1 2027, though Phase 2 is conditioned on securing adequate financing. This deal firmly establishes Digi Power X as a major player in the high-density AI infrastructure market.
At the time of this filing, DGXX was trading at $6.09 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $194.4M. The 52-week trading range was $1.16 to $6.78. This filing was assessed with positive market sentiment and an importance score of 10 out of 10.