Digi Power X Enters into LOI for Strategic Partnership With 1.3 GW Power Plant to Support AI Infrastructure Development

Rhea-AI Summary

Digi Power X (Nasdaq:DGXX) entered a non-binding LOI with Omnis Pleasants LLC to pursue a strategic partnership using the Pleasants Power Station (1.3 GW) to support large-scale AI and high-performance computing infrastructure.

Key terms include a comprehensive load and interconnection study of up to 1.3 GW, a potential long-term lease of up to 200 acres for Digi Power X's ARMS modular Tier III data centers, and a framework for mutual equity exchange including a pathway for Digi Power X to acquire >10% equity in the power plant entity, subject to definitive documentation, valuation, financing and regulatory approvals.

The parties expect the load study to start within 30 days and target definitive agreements in approximately 90 days, subject to customary conditions.

Positive

• Access to 1.3 GW of generation capacity for AI workloads
• Potential long-term 200-acre lease for modular data center deployment
• Framework for >10% equity ownership stake in the power plant entity
• Targeted 30-day start for load study and 90-day target for definitive agreements

Negative

• Non-binding LOI — terms are preliminary and not guaranteed
• Equity acquisition subject to valuation, financing, and regulatory approvals
• Load and interconnection study is evaluative and may not secure long-term power

Key Figures

Current price $2.72 Pre-news close vs 52-week range $0.85–$6.78

Volume today 4,879,421 shares 1.14x 20-day average volume of 4,283,316

Power plant capacity 1.3 GW Pleasants Power Station generation capacity in West Virginia

Load study size Up to 1.3 GW Comprehensive load and interconnection study for AI and HPC

Land lease Up to 200 acres Contemplated long-term lease for ARMS modular data centers

Equity stake threshold In excess of 10% Potential Digi Power X ownership in power plant entity

Load study start Within 30 days Expected initiation timeline under the LOI

Definitive agreement target Approximately 90 days Target timing to execute definitive agreements

Market Reality Check

$2.72 Last Close

Volume Volume 4,879,421 is at 1.14x the 20-day average, indicating slightly elevated trading ahead of this announcement. normal

Technical Shares at $2.72 are trading above the 200-day MA of $2.63 and remain 59.88% below the 52-week high of $6.78.

Peers on Argus 1 Up

DGXX was down 2.51% while peers showed mixed moves: STEM up 0.49%, VGAS down 3.83%, SAFX down 8.3%, PAM down 4.17%, TAC down 1.85%. Momentum data flagged only SAFX, suggesting DGXX’s setup was stock-specific rather than a broad utilities move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 24	Shareholder letter	Positive	-1.8%	Outlined 2025 pivot to power-backed AI and Tier-3 data centers.
Dec 08	Management change	Positive	+7.8%	Appointed CTO to lead ARMS 200, AI scaling and NeoCloudz platform.
Dec 03	AI infra deployment	Positive	-4.1%	Deployed ARMS 200 module and first NVIDIA B200 GPU cluster in Alabama.
Nov 18	ATM update	Neutral	+7.8%	Amended prospectus for existing ATM tied to US$250M base shelf.
Nov 13	Earnings and AI plan	Positive	-10.3%	Reported positive Q3 earnings and detailed 2026–2027 AI buildout.

Pattern Detected

Recent history shows several positive AI and infrastructure updates followed by negative price reactions, indicating a pattern where upbeat operational news has not consistently translated into short-term gains.

Recent Company History

Over the past few months, Digi Power X has steadily pivoted toward power-backed AI infrastructure. In Nov–Dec 2025 it reported positive Q3 earnings with $90M in cash and crypto, expanded ARMS 200 Tier III modular data centers, and implemented its first B200 GPU cluster, targeting 195 MW by 2027. Governance and capital-markets steps included an amended ATM tied to a US$250M base shelf. This LOI with a 1.3 GW plant extends that AI-focused power strategy into large-scale grid-connected capacity.

Market Pulse Summary

This announcement outlines a non-binding LOI giving Digi Power X access to a 1.3 GW power plant and up to 200 acres for its ARMS Tier III data center platform, reinforcing its pivot to AI and high-performance computing. Combined with prior AI-focused buildout and capital-markets activity, it highlights a scaling strategy that still depends on load studies, definitive agreements, valuation terms and regulatory approvals for full impact.

Key Terms

letter of intent financial

"announced that it has entered into a non-binding letter of intent (the "LOI") with"

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

gigawatt technical

"owner of the Pleasants Power Station, a 1.3 gigawatt ("GW") power generation facility"

A gigawatt is a unit of power equal to one billion watts, used to describe how much electricity can be produced or used at a given moment. For investors, gigawatts signal the scale of power projects or generation capacity—similar to saying a factory can run the equivalent of hundreds of thousands of homes at once—which affects revenue potential, project valuation, grid impact and a company’s competitive position in the energy market.

ai technical

"supporting large-scale artificial intelligence ("AI") and high-performance computing infrastructure"

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

high-performance computing technical

"supporting large-scale artificial intelligence ("AI") and high-performance computing infrastructure"

A cluster of very powerful computers, special chips and fast networks designed to tackle huge, complex calculations far faster than a normal PC — like replacing a single delivery van with a synchronized fleet to move a city’s worth of packages. For investors, high-performance computing matters because it enables faster product development, more accurate simulations and data analysis, and new revenue streams for hardware, software and services, making firms that supply or use it potentially more competitive and scalable.

tier iii technical

"its proprietary ARMS modular Tier III data center platform"

Tier III is a label for the third level in a multi‑level ranking system used across industries to mark relative standing — often indicating lower priority, capacity, or quality compared with Tier I or II. Investors use it as a quick signal about expected revenue, cost, risk or regulatory demands for an asset, facility or customer segment; think of it like choosing a mid- or economy‑class option when comparing service levels or risk profiles.

equity ownership financial

"pathway for Digi Power X to acquire an equity ownership stake in excess of 10%"

An ownership stake in a company represented by holding its shares; like owning slices of a pie, equity ownership gives a person a claim on part of the company’s profits and assets and usually some voting rights over key decisions. It matters to investors because the size of that stake determines how much of any future gains or losses they share, how much influence they have on company direction, and how their investment value can change with the market.

decarbonization technical

"aligning with broader decarbonization and energy-transition initiatives"

Decarbonization is the process of cutting a company’s greenhouse gas emissions across its operations, supply chain and products by switching to cleaner energy, improving efficiency and changing materials or processes. For investors it matters because lower emissions can reduce regulatory and energy costs, limit legal and reputational risks, and signal long-term competitiveness—like a business replacing a gas-guzzling fleet with fuel-efficient or electric vehicles to save money and stay compliant.

energy-transition technical

"aligning with broader decarbonization and energy-transition initiatives"

Energy-transition is the broad shift away from fossil fuels toward lower-carbon ways of producing and using energy, including wind and solar power, energy efficiency, batteries, and electrification. It matters to investors because it reshapes demand, costs, regulation and the value of assets—like a marketwide move from horses to cars that upends which businesses and technologies win or lose—so assessing exposure and future capital needs is essential for long-term returns.

AI-generated analysis. Not financial advice.

This news release constitutes a “designated news release” for the purposes of the Company's amended and restated prospectus supplement dated November 18, 2025, to its Canadian short form base shelf prospectus dated May 15, 2025.

MIAMI, FL / ACCESS Newswire / January 7, 2026 / Digi Power X Inc. ("Digi Power X" or the "Company") (Nasdaq:DGXX)(TSXV:DGX), an innovative energy infrastructure company, today announced that it has entered into a non-binding letter of intent (the "LOI") with Omnis Pleasants LLC ("Pleasants"), owner of the Pleasants Power Station, a 1.3 gigawatt ("GW") power generation facility located in West Virginia, to pursue a strategic partnership supporting large-scale artificial intelligence ("AI") and high-performance computing infrastructure.

Pursuant to the terms of the LOI, the parties intend to conduct a comprehensive load and interconnection study of up to 1.3 GW, evaluating long-term power availability and grid connectivity for energy-intensive computing applications.

The proposed strategic partnership also contemplates a long-term lease of up to 200 acres of land, that would enable Digi Power X to deploy AI and advanced computing infrastructure utilizing its proprietary ARMS modular Tier III data center platform.

In addition, the LOI establishes a framework for potential equity alignment, including a mutual equity exchange between Digi Power X and Pleasants based on fair market valuation, as well as a defined pathway for Digi Power X to acquire an equity ownership stake in excess of 10% in the power plant entity, subject to definitive documentation, agreed valuation, financing structure and applicable regulatory approvals.

Separately, Digi Power X and Pleasants intend to collaborate on a hydrogen-transition feasibility study for Digi Power X's New York power assets, aligning with broader decarbonization and energy-transition initiatives.

"This strategic partnership will advance our strategy of pairing large-scale, grid-connected power assets with next-generation AI infrastructure," said Michel Amar, CEO of Digi Power X. "Pleasants offers the scale, land availability and electrical infrastructure required to support AI and high-performance computing at meaningful, long-term levels."

The parties expect to initiate the load study within 30 days and target execution of definitive agreements within approximately 90 days, subject to customary conditions and approvals.

About Digi Power X

Digi Power X is an innovative energy infrastructure company that develops Tier III-certified modular AI data centers and drives the expansion of sustainable energy assets.

For further information, please contact:

Michel Amar, Chief Executive Officer
Digi Power X Inc.
www.digipowerx.com

Investor Relations
T: 888-474-9222
Email: IR@digihostpower.com

Cautionary Statement

Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Except for the statements of historical fact, this news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. Forward-looking information in this news release includes information about the Company's expectations concerning the strategic partnership with Pleasants, as well as the potential further improvements to profitability and efficiency across the Company's operations, including, as a result of the Company's expansion efforts, potential for the Company's long-term growth and clean energy strategy, and the business goals and objectives of the Company. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the Company's ability to enter into definitive documentation in respect of the proposed strategic partnership with Omnis and to achieve the anticipated benefits of such strategic partnership; delivery of equipment and implementation of systems may not occur on the timelines anticipated by the Company or at all; the results of a proposed comprehensive load and interconnection study; future capital needs and uncertainty of additional financing; share dilution resulting from equity issuances; risks relating to the strategy of maintaining and increasing Bitcoin holdings and the impact of depreciating Bitcoin prices on working capital; effects on Bitcoin prices as a result of the most recent Bitcoin halving; development of additional facilities and installation of infrastructure to expand operations may not be completed on the timelines anticipated by the Company, or at all; ability to access additional power from the local power grid and realize the potential of the clean energy strategy on terms which are economic or at all; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; further improvements to profitability and efficiency may not be realized; development of additional facilities to expand operations may not be completed on the timelines anticipated by the Company; ability to access additional power from the local power grid; an increase in natural gas prices may negatively affect the profitability of the Company's power plant; the digital currency market; the Company's ability to successfully mine digital currency on the cloud; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Annual Information Form of the Company and other documents disclosed under the Company's filings at www.sedarplus.ca and www.SEC.gov/EDGAR. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about, among other things, the current profitability in mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company's assets going forward; the Company's ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies on the cloud will be consistent with historical prices; the ability to maintain reliable and economical sources of power to run its cryptocurrency mining assets; the negative impact of regulatory changes in the energy regimes in the jurisdictions in which the Company operates; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainties therein. The Company undertakes no obligation to revise or update any forward-looking information other than as required by applicable law.

SOURCE: Digi Power X Inc.

View the original press release on ACCESS Newswire

FAQ

What did Digi Power X (DGXX) announce on January 7, 2026 about Pleasants Power Station?

Digi Power X announced a non-binding LOI with Pleasants to study up to 1.3 GW capacity and pursue a strategic partnership for AI infrastructure.

How much land could Digi Power X (DGXX) lease at Pleasants for AI data centers?

The LOI contemplates a potential long-term lease of up to 200 acres for deploying ARMS modular Tier III data centers.

Does the Digi Power X (DGXX) LOI include equity arrangements with Pleasants?

Yes; the LOI establishes a framework for a mutual equity exchange and a pathway for Digi Power X to acquire >10% equity, subject to definitive terms.

When will the Digi Power X (DGXX) load and interconnection study begin?

The parties expect to initiate the load and interconnection study within 30 days of the announcement.

Are the Digi Power X (DGXX) terms final and binding?

No; the LOI is non-binding and definitive agreements are targeted in about 90 days, subject to customary conditions.