Digi Power X secures $1.1B data center contract with AI chip maker Cerebras Systems

Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX), the AI information halfway infrastructure operator, has signed a Master Services Agreement with AI computing institution Cerebras Systems to colocate a purpose-built, 40-megawatt information halfway field successful Columbiana, Alabama, the institution announced Tuesday.

The archetypal 10-year word is valued astatine astir $1.1 billion, with a full imaginable declaration worth of up to $2.5 cardinal inclusive of renewal terms. Cerebras besides holds an enlargement enactment worthy an further $1.4 billion.

Revenue from the statement is expected to commence successful precocious 2026, with afloat gross ramp upon completion of the facility, targeted for Q1 2027.

Digi Power X volition make and present the Columbiana installation successful 2 phases: Phase 1 comprising 15 MW of IT load, followed by Phase 2 delivering an incremental 25 MW for a combined full of 40 MW. The installation volition beryllium built to Tier III infrastructure standards, optimized for the high-density thermal requirements of next-generation AI accelerator hardware.

Construction connected Phase 1 begins immediately, with Phase 1 Ready-for-Service targeted for mid-December 2026, and afloat deployment by extremity of Q1 2027. Phase 1 operation is being self-funded by the company.

The Columbiana field was selected for its entree to powerfulness infrastructure, a favorable regulatory environment, and proximity to large fibre corridors serving the southeastern US. Digi Power X owns the underlying existent property.

The institution has already completed operation of the dedicated on-site substation serving Phase 1, with grid interconnection finalized and a powerfulness transportation statement successful spot with Alabama Power.

Digi Power X CEO Michel Amar called the statement "transformational” for the company. "Signing a $1.1 cardinal anchor declaration with a premier AI compute institution is validation of everything we person built — our team, our sites, our infrastructure capabilities, and our imaginativeness for what a next-generation information halfway relation looks like. We are nary longer gathering toward the apical tier of this industry. We are successful it."

Alec Amar, president of Digi Power X, said the woody signals the company's lasting successful the AI infrastructure sector. "Closing a declaration of this magnitude with 1 of the salient emerging companies of the AI epoch signals Digi Power X is simply a superior subordinate operating astatine the highest level," helium said. "This is the benignant of landmark transaction that we judge volition unfastened the doorway to further blase tenants, lenders, and partners."

Hans Vestberg, elder advisor to Digi Power X and erstwhile CEO of Verizon Communications, compared the standard of the AI infrastructure buildout to the rollout of 4G and 5G networks. "This statement reflects Digi Power X's vision, the spot of its team, and its quality to execute arsenic a foundational player," helium said.

Vestberg besides serves arsenic a subordinate of the committee of directors of BlackRock.