Digi Power X Lands $1.1 Billion AI Colocation Deal for 40 MW Alabama Data Center
Summary
Digi Power X Inc. has announced a Master Services Agreement with Cerebras Systems for a 40 MW AI data center campus in Columbiana, Alabama. The initial 10-year term is valued at approximately $1.1 billion, with total potential contract value reaching $2.5 billion including renewal options. This agreement is highly significant as the initial contract value alone is several times the company's current market capitalization, providing substantial long-term revenue visibility and validating its AI infrastructure strategy. The company plans immediate construction, with Phase 1 (15 MW) targeted for service by December 2026 and full deployment (40 MW) by Q1 2027. This transformational deal positions Digi Power X as a major player in the rapidly expanding AI compute market. Investors should monitor construction progress and revenue ramp-up, as well as potential for further tenant acquisitions.
At the time of this announcement, DGXX was trading at $4.23 on NASDAQ in the Technology sector, with a market capitalization of approximately $287.7M. The 52-week trading range was $1.16 to $6.78. This news item was assessed with positive market sentiment and an importance score of 10 out of 10. Source: Access Newswire.