Digi Power X Signs AI Colocation Agreement with Leading AI Compute Company for 40 MW Data Center in Columbiana, Alabama
Rhea-AI Summary
Digi Power X (Nasdaq:DGXX) executed a 10-year Master Services Agreement with Cerebras Systems for a purpose-built, 40 MW AI data center campus in Columbiana, Alabama.
The initial term is valued at approximately $1.1 billion, with up to $2.5 billion potential including renewals. Phase 1 (15 MW) targets ready-for-service December 15, 2026; full 40 MW targeted by end of Q1 2027. Digi Power X owns the site, completed an on-site substation, and secured grid interconnection with Alabama Power.
AI-generated analysis. Not financial advice.
Positive
- $1.1B initial 10-year contract value with up to $2.5B total potential
- 40 MW purpose-built AI campus (15 MW Phase 1; +25 MW Phase 2)
- Owned underlying real property provides a balance-sheet-backed development platform
- On-site substation and grid interconnection with Alabama Power already completed
- Targeted Phase 1 ready-for-service on Dec 15, 2026; full deployment by Q1 2027
Negative
- None.
News Market Reaction – DGXX
On the day this news was published, DGXX gained 29.37%, reflecting a significant positive market reaction. Argus tracked a peak move of +74.5% during that session. Our momentum scanner triggered 60 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $107M to the company's valuation, bringing the market cap to $471.09M at that time. Trading volume was exceptionally heavy at 7.2x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DGXX is up 5.05% with above-average volume, while peers KEN and SUUN are also moving up (median ~3.9%) and SAFX is down, pointing to both stock-specific news and broader sector momentum.
Previous AI Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 20 | AI revenue contract | Positive | +19.0% | First AI GPU rental contract worth ~$19.6M over 24 months. |
| Mar 13 | AI platform launch | Positive | -21.6% | Co-founding USDC AI platform with initial raise and majority stake. |
| Mar 02 | AI capacity update | Positive | +6.2% | ARMS 200 commissioning and 10 MW AI target in Alabama with revenue projections. |
| Nov 13 | AI plan & earnings | Positive | -12.5% | Positive Q3 earnings with strong liquidity and 2026–2027 AI capacity targets. |
| Nov 03 | Balance sheet build | Positive | +4.3% | Balance sheet and crypto build-up to fund staged AI power rollouts. |
AI-related announcements are generally positive but have produced mixed reactions, with three upside moves and two selloffs on otherwise constructive AI news.
Over the past year, Digi Power X has steadily built its AI infrastructure story. In Nov 2025, it strengthened liquidity to about $85M and outlined targets up to 195 MW operational capacity. Subsequent updates in early 2026 covered ARMS 200 commissioning, a planned 10 MW in Alabama and projected $15M per MW revenue, plus the launch of US Data Centers valued near $10M. On Apr 20, 2026, it signed its first AI revenue contract (~$19.6M). Today’s large Cerebras colocation deal extends that AI contract trajectory.
Historical Comparison
Across 5 AI-tagged releases, DGXX’s average move was about -0.92%, with both rallies and selloffs. Today’s +5.05% gain on a large Cerebras contract sits above that typical reaction range.
AI-tagged news shows a progression from balance-sheet strengthening and capacity targets to ARMS 200 commissioning, formation of US Data Centers, and signed AI revenue contracts, culminating in a sizeable long-term Cerebras colocation agreement.
Regulatory & Risk Context
An effective S-3 shelf filed on 2026-04-09 allows Digi Power X to issue up to $750,000,000 in various securities, including an at-the-market program of up to $75,000,000 in subordinate voting shares, providing flexibility to fund Tier III data center construction and related AI power infrastructure.
Market Pulse Summary
The stock surged +29.4% in the session following this news. A strong positive reaction aligns with the scale of this AI colocation contract. The initial $1.1B 10-year term and up to $2.5B potential value materially exceed prior AI deals such as the ~$19.6M SubQ AI contract. History shows mixed responses to AI news, so gains have sometimes faded. An effective $750M shelf also gives management flexibility to fund build-out, which could introduce equity issuance risk alongside growth.
Key Terms
master services agreement financial
colocation technical
tier iii technical
ai accelerator hardware technical
AI-generated analysis. Not financial advice.
MIAMI, FL / ACCESS Newswire / May 5, 2026 / Digi Power X Inc. (Nasdaq:DGXX)(Cboe Canada:DGX) (the "Company" or "Digi Power X"), an AI data center infrastructure operator, today announced the execution of a Master Services Agreement (the "Agreement") with Cerebras Systems (the "Customer") for the colocation of a purpose-built, 40 megawatt ("MW") AI data center campus located in Columbiana, Alabama (the "Facility").
The initial 10-year term is valued at approximately
Digi Power X will develop and deliver the Facility in two phases: Phase 1 comprising 15 MW of IT load, followed by Phase 2 delivering an incremental 25 MW for a combined total of 40 MW. The Facility will be purpose-built to Tier III infrastructure standards optimized for the high-density thermal requirements of next-generation AI accelerator hardware.
This Agreement reflects the deep commitment that both companies are making to the Columbiana campus - a facility designed from the ground up around the power density and reliability demands of frontier AI compute.
"This agreement is transformational for Digi Power X. Signing a
- Michel Amar, Chairman & Chief Executive Officer, Digi Power X Inc.
Immediate Construction & Accelerated Deployment
Digi Power X will commence construction immediately on Phase 1, reflecting the Company's readiness across power, site development and long-lead equipment procurement.
Initial Deployment | 40MW critical IT load |
Construction Start | Immediate |
Phase 1 Ready-for-Service | Targeted December 15, 2026 |
Full Deployment | Targeted by end of Q1 2027 |
The Columbiana, Alabama campus was selected for its access to robust power infrastructure, a favorable regulatory environment, and proximity to major fiber corridors serving the southeastern United States. Digi Power X owns the underlying real property, providing a balance-sheet-backed development platform that differentiates the Company from lease-dependent competitors.
The Company has already completed construction of the dedicated on-site substation serving Phase 1, with grid interconnection finalized and a power delivery agreement in place with Alabama Power - minimizing two of the most significant development risk factors typically associated with large-scale data center projects and positioning the Columbiana campus for an accelerated construction timeline.
Digi Power X plans to commence site development immediately and targets Phase 1 Ready-for-Service in December 2026, with Phase 2 delivery to follow. Phase 1 construction is being self-funded by the Company, reflecting Digi Power X's financial commitment to the Columbiana campus and its confidence in the long-term value of this partnership.
"This deal is a statement. Closing a contract of this magnitude with one of the prominent emerging companies of the AI era signals Digi Power X is a serious player operating at the highest level. This is the kind of landmark transaction that we believe will open the door to additional sophisticated tenants, lenders, and partners."
- Alec Amar, President, Digi Power X Inc.
"The buildout of high-density AI infrastructure is one of the defining challenges of our generation, on the scale of the rollout of 4G and 5G that transformed global connectivity. This agreement reflects Digi Power X's vision, the strength of its team, and its ability to execute as a foundational player. I'm proud to be part of what Digi Power X is building."
- Hans Vestberg, Senior Advisor, Digi Power X Inc.; Former Chairman and CEO, Verizon Communications; Member, Board of Directors, BlackRock
Strategic Significance
The Agreement is expected to be a core driver of Digi Power X's forward revenue growth.
Revenue commencement: Expected late 2026.
Full revenue ramp: Upon completion of full deployment, targeted in Q1 2027.
Upside: Customer expansion option for an additional
$1.4 billion .
About Digi Power X
Digi Power X is an AI infrastructure company, operating a vertically integrated portfolio of power assets and data center capacity across Alabama, New York, and North Carolina, with approximately 400 MW of secured power across its sites. The Company's NeoCloudz platform delivers GPU-as-a-Service on dedicated, bare metal NVIDIA infrastructure. For more information, visit www.digipowerx.com.
Investor Relations
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. Cboe Canada does not accept 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 statements regarding the Agreement, including expected TCV from the Agreement during its term, and goals, expectations and targets for the business of Digi Power X. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "goals,' "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking information is subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: changes to or modification of the Agreement in the future; future capital needs and uncertainty regarding the Company's ability to raise additional capital; costs associated with the development, manufacturing and deployment of AI infrastructure; construction execution risks and delays in long-lead equipment delivery; global demand for AI computing infrastructure; further improvements to profitability and efficiency may not be realized; and other related risks, some of which are more fully set out in the Company's annual report on Form 10-K for the year ended December 31, 2025 and other documents disclosed in the Company's filings at www.sedarplus.ca and in the Company's annual, quarterly and current reports filed with the SEC on its website, 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. 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