Bought yesterday for the new challenge, today I get this message from $DGX (+17,92%) this message.
The shares of Digi Power X Inc. (NASDAQ:DGXX) rose 25% after the company announced a master services agreement with Cerebras Systems for the colocation of a 40-megawatt AI data center in Columbiana, Alabama.
The initial 10-year term is valued at approximately USD 1.1 billion, with a potential total contract value of up to USD 2.5 billion including renewal options. The agreement provides Digi Power X with long-term revenue visibility and assures Cerebras of guaranteed data center capacity from the first day of operation.
Digi Power X will develop the facility in two phases. Phase 1 will include a 15 MW IT load, followed by Phase 2 with an additional 25 MW, for a total capacity of 40 MW. The facility will be built to Tier III infrastructure standards and optimized for the high thermal requirements of high-density AI accelerator hardware.
The company will begin construction of Phase 1 immediately and is targeting an operational readiness date of December 15, 2026. Full commissioning is planned for the end of the first quarter of 2027. The construction of Phase 1 will be self-financed by the company.
The Columbiana site was selected due to its access to power infrastructure, favorable regulatory environment and proximity to major fiber corridors serving the southeastern United States. Digi Power X owns the underlying land and has already completed construction of its own substation for Phase 1. The grid connection has been finalized and a power supply agreement with Alabama Power is in place.
Revenue generation is expected to begin by the end of 2026, with full revenue ramp-up targeted for the first quarter of 2027 following completion of commissioning.
