Digi Power X Stock Surges 25% on $1.1B AI Data Center Deal with Cerebras

Digi Power X Inc. (NASDAQ: DGXX) shares jumped 25% Tuesday after the company unveiled a transformative Master Services Agreement with Cerebras Systems to colocate a 40 megawatt AI data center campus in Columbiana, Alabama. The deal instantly cements Digi Power X’s foothold in the booming AI infrastructure space and delivers a substantial multi-year revenue runway.

A Landmark Multi-Billion Dollar Agreement

The initial 10-year term carries a value of approximately $1.1 billion, while the total potential contract value climbs as high as $2.5 billion when factoring in renewal terms. For Digi Power X, the agreement secures long-term revenue visibility; for Cerebras, it guarantees data center capacity from day one of service — a critical advantage in today’s capacity-constrained AI compute market.

Two-Phase Build-Out in Alabama

Digi Power X plans to develop the facility in two distinct phases. First, Phase 1 will deliver 15 MW of IT load. Then, Phase 2 will add an incremental 25 MW, bringing the campus to its full 40 MW combined capacity. Importantly, the facility will be built to Tier III infrastructure standards specifically optimized for the high-density thermal demands of AI accelerator hardware.

Construction on Phase 1 begins immediately, with the company targeting a Ready-for-Service date of December 15, 2026. Full deployment, meanwhile, is on track for the end of the first quarter of 2027. Notably, Digi Power X is self-funding Phase 1 construction — a clear signal of management’s confidence in the project’s economics.

Why Columbiana?

Several strategic factors drove the site selection. To begin with, the Columbiana campus offers robust access to power infrastructure, sits within a favorable regulatory environment, and benefits from close proximity to major fiber corridors serving the southeastern United States. Beyond location advantages, Digi Power X owns the underlying real property outright and has already completed construction of the dedicated on-site substation serving Phase 1. Furthermore, grid interconnection is finalized, and a power delivery agreement with Alabama Power is firmly in place — eliminating two of the most common bottlenecks plaguing data center developers today.

Revenue Outlook

Looking ahead, revenue commencement is expected in late 2026, with the full revenue ramp targeted for the first quarter of 2027 upon completion of deployment. Consequently, investors can anticipate a meaningful step-up in Digi Power X’s top line as Phase 1 comes online, followed by another leg of growth as Phase 2 capacity activates.

The Cerebras partnership marks a defining moment for Digi Power X, positioning the company at the intersection of two of the most powerful tailwinds in technology: surging AI compute demand and the build-out of next-generation data center infrastructure across North America.

For more investor relations information on Digi Power X Inc. please visit www.digipowerx.com/investor-relations.