Key Highlights
- Shares of Digi Power X (DGXX) climbed approximately 39% following the reveal of a Master Services Agreement with Cerebras Systems
- The partnership involves developing a 40 MW AI-focused data center campus located in Columbiana, Alabama
- The base 10-year agreement carries a valuation of $1.1 billion, potentially expanding to $2.5 billion with optional renewal terms
- Development will proceed in two distinct phases, with Phase 1 scheduled for completion by December 15, 2026
- Income generation is projected to commence in late 2026, reaching full operational capacity during Q1 2027
Shares of Digi Power X (DGXX) experienced a remarkable surge of approximately 39% during Tuesday’s trading session following the company’s disclosure of a substantial colocation partnership with artificial intelligence semiconductor firm Cerebras Systems.
The partnership encompasses a custom-designed 40 megawatt AI data center campus situated in Columbiana, Alabama. The base contract spanning 10 years carries an estimated value of $1.1 billion.
When factoring in potential renewal options, the total agreement value could escalate to $2.5 billion. This arrangement provides Digi Power X with predictable long-term revenue streams starting from the initial service activation.
The site will be constructed through a two-stage development approach. The initial phase encompasses 15 MW of IT capacity, while the subsequent phase introduces an additional 25 MW, totaling 40 MW upon completion.
The infrastructure will adhere to Tier III standards. The design specifications are tailored explicitly to accommodate the elevated density and thermal requirements of cutting-edge AI accelerator technology — precisely the type of computational workloads Cerebras specializes in.
Development of Phase 1 commences without delay. Notably, Digi Power X is independently financing the first phase construction, a significant detail considering the project’s magnitude.
The organization has already finalized the on-site electrical substation for Phase 1. Grid connection arrangements are complete, and a power supply contract with Alabama Power has been executed.
The Columbiana location was selected based on its robust power infrastructure capabilities, favorable regulatory framework, and strategic positioning near major fiber optic networks throughout the southeastern region. Digi Power X maintains ownership of the physical property.
Revenue Projection Timeline
Phase 1 aims for a Ready-for-Service milestone of December 15, 2026. Complete rollout encompassing both development phases is anticipated by the conclusion of Q1 2027.
Revenue generation from this partnership is forecasted to initiate in late 2026. Maximum revenue production is scheduled to align with the finalization of the complete 40 MW infrastructure deployment.
Cerebras Systems’ Strategic Perspective
From Cerebras’ standpoint, this agreement secures assured data center infrastructure from day one of operations. Such reliability is crucial for an organization expanding frontier artificial intelligence computing capabilities.
Cerebras Systems has established recognition for its large-format AI processing chips and computational platforms. The Columbiana facility was characterized as being engineered “from the ground up” to address power density and dependability requirements.
The arrangement delivers mutual advantages. Digi Power X obtains a contractually guaranteed income pipeline. Cerebras secures exclusive, purpose-engineered infrastructure without undertaking property development independently.
DGXX additionally trades on Cboe Canada using the ticker symbol DGX, which experienced gains of roughly 38.93% on the announcement.
The equity was trading higher by approximately 39% as of Tuesday afternoon in response to the partnership disclosure.
