Axe Compute and Duos Technologies Enter into Agreements For 55 MW of New AI Data Center Capacity Across Multiple U.S. Locations

Rhea-AI Summary

Axe Compute (Nasdaq: AGPU) and Duos Technologies (Nasdaq: DUOT) have entered into agreements for up to 55 MW of new dedicated AI data center capacity across multiple U.S. locations. According to the companies, these agreements represent over $500 million in expected aggregate payments for AI data center capacity.

This expansion is in addition to a 10 MW deployment at Duos’ Georgia facility currently being delivered for Axe Compute. Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning, and performance testing.

The companies have also signed nonbinding term sheets for minority equity investments by Axe Compute in project entities, where Axe Compute is expected to hold 49% equity interests, providing Axe with long-term capacity control and giving Duos a non-dilutive project financing model, subject to definitive agreements and approvals.

Positive

• 55 MW of new AI data center capacity agreements across multiple U.S. locations
• Agreements tied to over $500 million in expected aggregate payments for capacity
• Build-out expands on existing 10 MW deployment at Duos’ Georgia facility
• Axe Compute expected to hold 49% equity stakes in project entities, if finalized
• Non-dilutive financing structure for Duos through Axe Compute’s planned equity investments

Negative

• Minority equity investments are based on nonbinding term sheets and may not close
• Project readiness only targeted for late 2026 to early 2027, delaying near-term impact
• Capacity deployment remains subject to construction, commissioning, and performance testing

Market reaction after AI capacity partnership: DUOT +7.55%

+7.55% $9.80 6.7x vol

15m delay

+7.55% Vs previous close

+3.1% Peak in 2 min

$9.80 Last Price

$9.29 $10.94 Day Range

$307.77M Market Cap

6.7x Rel. Volume

Following this news, DUOT has gained 7.55%, reflecting a notable positive market reaction. Argus tracked a peak move of +3.1% during the session. Our momentum scanner has triggered 23 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $9.80. Trading volume is exceptionally heavy at 6.7x the average, suggesting very strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

An active S-3 shelf was recorded in the current context. The announcement adds a capacity expansion ...

Analysis

An active S-3 shelf was recorded in the current context. The announcement adds a capacity expansion opportunity, while nonbinding investment terms and construction, commissioning, and performance-testing conditions identify execution risk; the shelf adds financing flexibility.

Key Figures

AI data center capacity: 55 MW Expected aggregate payments: Over $500 million Existing deployment: 10 MW +2 more

5 metrics

AI data center capacity 55 MW Agreements across multiple U.S. locations

Expected aggregate payments Over $500 million Dedicated AI data center capacity agreements

Existing deployment 10 MW Duos facility in Georgia

Project readiness Late 2026 to early 2027 Initial readiness target, subject to project conditions

Expected equity interest 49% Axe Compute minority investments in project entities

Previous AI Reports

5 past events · Latest: Aug 13 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 13	AI lease term sheet	Positive	+0.4%	Nonbinding lease term sheet covered the company's edge data center portfolio.
Jul 16	AI colocation agreement	Positive	+1.6%	Five-year hyperscaler agreement added contracted revenue and expanded data center capacity.
Jul 14	Edge facility opening	Positive	-4.5%	Abilene edge facility opened following the successful launch of operations.
Jun 09	Edge center open house	Positive	-7.2%	Hereford facility open house highlighted modular infrastructure and AI support capabilities.
Jun 05	GPU debt financing	Positive	-15.5%	Asset-backed financing supported GPU deployment managed by Hydra Host.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across five AI-tagged events, three reactions diverged from the positive announcement sentiment, and the tag-specific average move was -5.04%.

Key Terms

bare-metal gpu compute, nonbinding term sheets, non-dilutive financing, slas

4 terms

bare-metal gpu compute technical

"a neocloud AI infrastructure company delivering dedicated, bare-metal GPU compute"

Direct access to a physical graphics processing unit (GPU) for running computation-heavy tasks without running through a virtual machine or shared hypervisor layer. Like renting an entire car instead of sharing a ride, bare-metal GPU compute gives applications exclusive use of the hardware, which can improve speed, predictability, and resource efficiency for workloads such as machine learning training, simulations, and high-performance rendering—details that affect cloud pricing, performance guarantees, and infrastructure choices.

nonbinding term sheets financial

"executed nonbinding term sheets for minority investments by Axe Compute"

A nonbinding term sheet is a preliminary document that outlines the main economic points and basic structure of a proposed transaction—such as a merger, acquisition, financing, or investment—without creating a legally enforceable obligation to complete the deal. It acts like a shared blueprint or handshake that sets expectations on price, timing and key conditions for further negotiation; investors use it to gauge the likely size, risks and timeline of a possible transaction before due diligence and binding contracts are drafted.

non-dilutive financing financial

"investment also provides a non-dilutive financing model for Duos Technology"

Financing that provides cash to a company without issuing new shares or reducing existing shareholders’ ownership stakes, such as grants, loans, or royalty and partnership deals. It matters to investors because it preserves each shareholder’s percentage of the company and potential future earnings—think of it as getting money by borrowing or winning a prize rather than selling extra slices of the ownership pie—though it can shift risks toward debt or contractual obligations.

slas technical

"with enterprise-grade SLAs and 24/7 operations"

Service-level agreements (SLAs) are written promises between a company and its customers that define how well a product or service must perform — for example uptime, response times, or support levels. Investors care because SLAs affect revenue reliability, customer satisfaction and potential penalties: like a landlord’s lease promising heat and water, missed commitments can lead to refunds, lost clients or extra costs that change a business’s earnings outlook.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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55 MW agreements secure future AI data center capacity ahead of accelerating, market-wide demand

PITTSBURGH and JACKSONVILLE, Fla., Aug. 17, 2026 (GLOBE NEWSWIRE) -- Axe Compute Inc. (Nasdaq: AGPU), a neocloud AI infrastructure company delivering dedicated, bare-metal GPU compute and large-scale AI cluster build-outs at global scale, and Duos Technologies Group, Inc. (Nasdaq: DUOT), a leading provider of adaptive, modular, and scalable Edge Data Center solutions, today announced agreements adding up to 55 MW of AI data center capacity across multiple U.S. locations.

The agreements represent over $500 million in expected aggregate payments for dedicated AI data center capacity across multiple U.S. locations. The expansion is in addition to the companies' 10 MW deployment at Duos' facility in Georgia, where Duos is in the process of delivering for Axe Compute. That track record is the foundation for this next phase: more capacity, more locations, and the same standard of execution. Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning, and performance testing.

In addition, Duos and Axe Compute have executed nonbinding term sheets for minority investments by Axe Compute in the entities associated with the projects, with Axe Compute expected to hold 49% of the equity interests. These equity investments remain subject to definitive documentation, satisfaction of closing conditions, and the respective approval processes of both companies.

This is a meaningful step for Axe Compute: rather than renting space in someone else's facility, the company will own a stake in the buildings and power that serve its customers. Ownership gives Axe Compute additional long-term control over capacity and cost, a durable asset behind its multi-year customer contracts, and the ability to expand on its own timeline as demand grows. It is an expansion of the Axe Compute Build model at work: capacity that Axe Compute co-engineers, deploys, owns, and operates. Axe Compute’s investment also provides a non-dilutive financing model for Duos Technology to launch more data centers faster.

For customers, the expansion means more dedicated AI capacity can be ready sooner, at a time when power is scarce. Demand for AI compute is accelerating, and Axe Compute is securing capacity ahead of it to ensure that customer deployments are not waiting on real estate, power, or construction. The facilities are being designed around the density, cooling, and availability requirements of next-generation GPU systems. Duos' modular approach shortens the path from order to energization, and Axe Compute designs, deploys, and operates the infrastructure end to end, with enterprise-grade SLAs and 24/7 operations. The result is what customers sign with Axe Compute for: purpose-built AI infrastructure, delivered with speed and run with quality.

"When you find a partner that does a great job and you can trust, you want to do more business with them. That is what we have found in Duos," said Christopher Miglino, Chief Executive Officer of Axe Compute. "We see compute demand accelerating, and we are excited to deliver more Axe Compute Build contracts to our customers alongside a key partner."

"Signing these agreements marks an important step in expanding our relationship with Axe Compute and the Duos platform," said Duos CEO Doug Recker. "Our work in Georgia established a strong foundation, and this expansion demonstrates the scale of the opportunity and the accelerating demand for AI infrastructure. We believe Duos and Axe Compute can create a repeatable model for bringing purpose-built AI capacity to market."

ABOUT AXE COMPUTE

Axe Compute Inc. (Nasdaq: AGPU) is a neocloud AI infrastructure platform built on a fundamental premise: AI innovation should not be constrained by hardware choice or availability. The company provides enterprises and AI innovators with dedicated compute through two core offerings: Axe Compute Access, delivering a wide range of the latest high-performance GPU infrastructure across global locations, and Axe Compute Build, through which Axe Compute co-engineers, deploys, owns, and operates large-scale, dedicated AI infrastructure worldwide. All solutions are supported by enterprise-grade SLAs and operational expertise. Axe Compute is headquartered in Pittsburgh, Pennsylvania. For more information, visit axecompute.com.

ABOUT DUOS TECHNOLOGIES GROUP, INC.

Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, is focused on providing and managing modular data center colocation facilities and infrastructure solutions. Through its wholly owned subsidiaries Duos Edge AI, Inc., and Duos Technology Solutions, Inc., the Company delivers high function computing infrastructure at the “Edge” designed to support high power computing facilities suitable for AI and Enterprise Computing. Duos is strategically focused on scaling its edge data center platforms in conjunction with its data center infrastructure solutions business. It provides manufacturer-agnostic sourcing and fulfillment services to support efficient deployment of data centers and IT environments. Together, these platforms position the Company to address the growing demand for distributed digital infrastructure, while continuing to support legacy applications in Tier 3 and Tier 4 markets. For more information, visit www.duostech.com and www.duosedge.ai.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements regarding the relationship between Axe Compute and Duos, the signed service orders, and the planned facilities and capacity, including statements regarding expected capacity, locations, deployment and delivery, the contemplated investments and their funding, anticipated customer demand, and the potential benefits of the expanded partnership. Development of the planned facilities remains subject to required approvals, financing, final technical designs, site and power availability, construction and commissioning, and other conditions, and there can be no assurance that the planned facilities will be completed as described or at all. Forward-looking statements are subject to substantial risks and uncertainties that could cause actual results to differ materially, including those described in each company's filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and neither company undertakes any obligation to update them except as required by applicable law.

AXE COMPUTE INVESTOR CONTACT Erin McMahon, Axe Compute Inc., Investor Relations, ir@axecompute.com | axecompute.com | Nasdaq: AGPU

DUOS TECHNOLOGIES INVESTOR CONTACT Tom Colton and Greg Bradbury, Gateway Group, Inc., +1 949-574-3860, DUOT@duostech.com

FAQ

What did Axe Compute (AGPU) and Duos Technologies (DUOT) announce on August 17, 2026?

Axe Compute and Duos Technologies announced agreements for up to 55 MW of AI data center capacity across multiple U.S. locations, with over $500 million in expected aggregate payments, according to the companies. The deals expand on an existing 10 MW Georgia deployment.

How much AI data center capacity is covered by the new AGPU and DUOT agreements?

The agreements cover up to 55 MW of new AI data center capacity, according to Axe Compute and Duos Technologies. This capacity will be spread across multiple U.S. locations and is in addition to the companies’ existing 10 MW deployment in Georgia.

What is the expected financial value of the Axe Compute and Duos Technologies AI capacity agreements?

According to the companies, the agreements represent over $500 million in expected aggregate payments for dedicated AI data center capacity. These payments relate to 55 MW of new capacity across multiple U.S. locations and build on their prior Georgia project collaboration.

When will the new Axe Compute (AGPU) and Duos Technologies (DUOT) AI data centers be ready?

Initial project readiness is targeted for late 2026 and continues into early 2027, according to the companies. These timelines remain subject to construction progress, commissioning activities, and successful performance testing before capacity becomes available for customer deployments.

What ownership stake will Axe Compute (AGPU) have in the new Duos Technologies projects?

Axe Compute is expected to hold 49% equity interests in entities associated with the projects, according to the companies. This is based on nonbinding term sheets and remains subject to definitive documentation, closing conditions, and internal approval processes for both parties.

How do the new agreements impact Duos Technologies (DUOT) financing and growth plans?

According to Duos Technologies, Axe Compute’s planned minority equity investments provide a non-dilutive financing model for launching more data centers. This structure may help Duos scale its modular edge data center platforms faster without issuing additional equity, if definitive agreements are completed.

How do the new AGPU and DUOT agreements relate to their existing 10 MW Georgia project?

The new 55 MW agreements build on the companies’ existing 10 MW deployment at Duos’ Georgia facility, according to Axe Compute and Duos. That project’s execution track record is described as the foundation for expanding to more capacity and additional U.S. locations.