Digi Power X Lands $1.1 Billion, 10-Year AI Data Center Deal—Long-Term Revenue Visibility Set to Transform Growth Outlook
Landmark $1.1 Billion Agreement Brings 40MW AI Data Center to Alabama
Digi Power X (NASDAQ:DGXX) made waves today after announcing a master colocation agreement with Cerebras Systems for a 40MW data center campus in Columbiana, Alabama. The deal—anchored by a 10-year, $1.1 billion minimum commitment—could grow to as much as $2.5 billion inclusive of potential expansions and renewals. Construction of the first 15MW phase is set to begin immediately, and the project is designed to meet the power and cooling demands of next-generation AI hardware.
Contract Structure Offers Long-Term Revenue Certainty and Expansion Upside
Unlike short-term hosting deals, Digi Power X’s agreement provides a decade of revenue visibility, beginning with the initial $1.1 billion term and an option for Cerebras to increase its commitment by up to $1.4 billion. For Digi Power X, that means stable cash flow and enhanced credibility as it competes with larger, more established data center peers.
| Deal Details | Figures / Timeline |
|---|---|
| Total Initial Term Value | $1.1 billion (10 years) |
| Potential Total Value Including Expansion | Up to $2.5 billion |
| Phase 1 Deployment | 15MW by Dec 2026 |
| Full Deployment | 40MW by Q1 2027 |
| Revenue Commencement | Late 2026 |
Immediate Construction and Completed Grid Interconnection Minimize Delays
Digi Power X stands out with site control and infrastructure readiness. Phase 1 is self-funded, construction starts right away, and grid interconnection is already finalized with Alabama Power—mitigating two of the biggest risks for large campus projects. By owning the land and having a dedicated on-site substation completed, Digi Power X separates itself from lease-reliant competitors and accelerates its deployment schedule.
Revenue Growth Set to Ramp as Phase 1 Goes Live in December 2026
Revenue from the massive colocation contract will flow once Phase 1 is service-ready, targeted for December 2026, with the 25MW Phase 2 completed by Q1 2027. This aligns Digi Power X for a major revenue uptick once full operations begin and provides a platform to attract additional AI tenants, lenders, and partners seeking reliable, high-density hosting space.
Strategic Location and Infrastructure Offer Competitive Advantage
The Columbiana campus offers robust power infrastructure and prime fiber routes in the heart of the Southeast—two critical ingredients for high-performance AI compute. By controlling both the real estate and the power assets, Digi Power X delivers a financial and operational edge that’s hard for competitors to match, especially as demand for reliable infrastructure soars.
Investor Takeaway: New Agreement Redefines Digi Power X’s Growth Trajectory
This strategic deal is positioned to be the cornerstone of Digi Power X’s revenue growth and signals the company’s move into the upper echelon of AI infrastructure operators. Investors and industry observers will be watching closely as construction milestones approach and revenue begins to ramp. The scale of this project, combined with ownership of core assets and a marquee anchor tenant, elevates Digi Power X’s profile in the rapidly expanding AI data center landscape.
Key Facility Development Dates
| Milestone | Target Date |
|---|---|
| Construction Start | Immediate |
| Phase 1 Ready-for-Service | December 15, 2026 |
| Full 40MW Deployment | By end of Q1 2027 |
As always, investors should be mindful of execution risks and future capital needs, but Digi Power X’s new partnership could mark a defining turning point for the company’s ambitions to become a foundational player in the AI-driven data center sector.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI