Digi Power X Inc. (NASDAQ:DGXX) shares are trading higher Tuesday after the company announced it inked a colocation agreement with an AI compute company for a data center in Alabama.
- Digi Power X stock is showing exceptional strength. What’s driving DGXX stock higher?
AI Colocation Agreement Details
Digi Power X entered into a master services agreement with Cerebras Systems for a purpose-built 40-megawatt AI data center campus in Columbiana, Alabama. The initial 10-year term of the agreement is valued at approximately $1.1 billion, with total potential contract value of up to $2.5 billion, including renewal terms.
Digi Power said it will develop the facility in two phases, with Phase 1 delivering 15 MW of IT load and Phase 2 adding 25 MW, bringing total capacity to 40 MW.
The company plans to begin construction immediately, with Phase 1 targeted to be ready for service by Dec. 15, 2026, and full deployment expected by the end of the first quarter of 2027.
Digi Power X said the agreement is expected to drive forward revenue growth, with revenue commencement anticipated in late 2026 and full ramp following completion of the project. The company also noted that the customer has an expansion option that could add up to $1.4 billion in additional contract value.
CEO Michel Amar said the agreement represents a transformational milestone for the company, highlighting its infrastructure capabilities and positioning in the AI data center market.
“We are no longer building toward the top tier of this industry. We are in it,” Amar said.
Digi Power X Shares Soar
DGXX Price Action: At the time of writing, Digi Power shares are trading 27.09% higher at $5.02, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
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