Key Highlights
- Shares of Digi Power X (DGXX) climbed approximately 39% following the revelation of a Master Services Agreement with Cerebras Systems
- The partnership encompasses a 40 megawatt AI data center campus located in Columbiana, Alabama
- The agreement spans 10 years with an initial valuation of $1.1 billion, potentially reaching $2.5 billion with renewal options
- Construction will proceed in two distinct phases, with Phase 1 scheduled for completion by December 15, 2026
- Revenue generation is projected to commence in late 2026, ramping up fully during Q1 2027
Shares of Digi Power X (DGXX) experienced a significant surge of approximately 39% on Tuesday following the company’s disclosure of a substantial colocation partnership with artificial intelligence chip manufacturer Cerebras Systems.
The partnership involves a custom-designed 40 megawatt AI data center facility in Columbiana, Alabama. The contract’s initial decade-long period carries an estimated value of roughly $1.1 billion.
When accounting for potential renewal periods, the total agreement value could climb to $2.5 billion. This arrangement provides Digi Power X with predictable long-term revenue streams starting from the facility’s launch date.
The development plan encompasses two separate construction phases. The first phase will deliver 15 MW of IT capacity, while the second phase will contribute an additional 25 MW, totaling 40 MW across the entire campus.
The infrastructure will meet Tier III data center standards. These specifications are tailored specifically to accommodate the high-density thermal requirements associated with cutting-edge AI accelerator technology — precisely the type of computational workloads that Cerebras deploys.
Ground will break on Phase 1 without delay. Notably, Digi Power X is financing the Phase 1 construction independently, a significant commitment considering the project’s magnitude.
The organization has already finalized the on-site electrical substation for Phase 1. Grid connectivity has been secured, and an electricity supply arrangement with Alabama Power has been established.
The Columbiana location was selected based on its robust power infrastructure, favorable regulatory climate, and strategic access to significant fiber optic networks throughout the southeastern region. Digi Power X holds ownership of the real estate at this location.
Revenue Projection Timeline
Phase 1 is slated to achieve Ready-for-Service status by December 15, 2026. Complete deployment across both construction phases is anticipated by the conclusion of Q1 2027.
Revenue generation from this partnership is forecast to begin during late 2026. Complete revenue optimization is planned to align with the finalization of the full 40 MW infrastructure deployment.
What This Means for Cerebras Systems
From Cerebras’ perspective, this partnership secures committed data center infrastructure from operational day one. Such assurance is crucial for an organization expanding frontier AI computational capabilities.
Cerebras Systems has established a reputation for manufacturing large-scale AI processors and computing platforms. The Columbiana facility was characterized as being engineered “from the ground up” to address specific power density and reliability requirements.
The partnership framework creates mutual advantages. Digi Power X secures a contractually guaranteed revenue pipeline. Cerebras obtains dedicated, custom-built infrastructure without undertaking real estate development independently.
DGXX is also listed on Cboe Canada under the ticker symbol DGX, which experienced an increase of approximately 38.93% on the announcement.
The stock was trading up roughly 39% as of Tuesday afternoon in response to the news.
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