MIAMI, May 5, 2026, 12:14 EDT
- Digi Power X announced a decade-long master services deal with Cerebras Systems for a 40-megawatt AI colocation campus located in Columbiana, Alabama. Under a colocation setup, customers lease data-center space, power, and cooling instead of developing their own facilities.
- This deal arrives just as Cerebras pitches its IPO, handing the AI chip company a tangible capacity narrative for investors, and locking in Digi Power X’s biggest tenant to date.
- Digi Power X jumped roughly 30% to $5.145 late in the morning, with the stock having earlier hit an intraday high of $7.26 in U.S. trading.
Digi Power X Inc., based in Miami, has inked a 10-year deal with Cerebras Systems worth roughly $1.1 billion to colocate a custom-built, 40-megawatt AI data center campus in Columbiana, Alabama, the company announced Tuesday. If renewal options are exercised, the contract could reach $2.5 billion in total value.
It comes down to timing. On Monday, Cerebras launched its IPO roadshow, eyeing a Nasdaq debut under the ticker CBRS. The chipmaker aims to sell 28 million shares, pricing them in a range of $115 to $125 apiece. With a guaranteed data-center buildout in the mix, Cerebras adds another angle on capacity just as investors assess the fresh crop of AI infrastructure IPOs.
Digi Power X (Nasdaq: DGXX, Cboe Canada: DGX) is edging further away from its legacy power-and-mining business, securing a new contract aimed squarely at AI infrastructure. On its website, the company highlights the Cerebras deal as its most recent update, coming after it signed a bare-metal GPU rental pact with SubQ AI on April 20, a deal that could bring in around $19.6 million. The GPU rental model lets customers access the graphics processors—crucial for AI—without taking ownership of the equipment.
The Alabama site will roll out in two phases—a 15 MW IT load at first, then a follow-up with 25 MW. Digi Power X’s plan calls for Tier III standards, which typically allow maintenance without taking key systems offline.
Construction on Phase 1 kicks off right away, with the first section slated to be operational by Dec. 15, 2026. Full rollout should wrap by the close of the first quarter in 2027. According to the company, it owns the property, has completed the on-site substation for Phase 1, secured grid interconnection, and locked in a power delivery deal with Alabama Power.
Michel Amar, chairman and CEO, called the contract “transformational,” adding that the company now sees itself fully “in it” as a data-center operator. President Alec Amar labeled the move “a statement.” Hans Vestberg, senior adviser at Digi Power X and ex-Verizon CEO, pointed to high-density AI infrastructure as one of this generation’s “defining challenges.” ACN Newswire
Digi Power X debuted at $5.33, shot up to $7.26, then slipped back to $5.145—still a gain of roughly 30%. More than 85 million shares changed hands as the market response swung hard but remained messy.
Digi Power X is stepping into a fiercely competitive—and high-cost—scramble for AI data-center infrastructure. CoreWeave just last month landed a new $21 billion cloud-capacity agreement with Meta, with plans that could see its capital spending reach up to $35 billion this year. Applied Digital, too, has seen gains on the back of surging demand for major AI facilities, according to Reuters.
The situation isn’t straightforward. Back in February, D.A. Davidson’s Alexander Platt summed up CoreWeave’s dilemma to Reuters: the company faced blowback for “either having too little capex or too much capex.” It’s a snapshot of the bind for AI infrastructure stocks right now—investors are hungry for more capacity, but wary of how much debt is piling up, how fast construction is moving, and whether customer rosters are too narrow. Reuters
Risks remain clear. Revenue isn’t expected until late 2026, and hitting that target relies on finishing the 40-MW campus as planned. Digi Power X flagged its securities as highly speculative, pointing to possible shifts in the agreement, future funding requirements, construction hurdles, and potential delays in sourcing long-lead equipment—any of which could alter the outcome.
Digi Power X claims it runs a mix of power assets and data-center sites in Alabama, New York, and North Carolina, totaling roughly 400 MW of secured power. The Cerebras agreement adds some weight to the company’s narrative, but now comes a much more concrete hurdle: delivering on the contract with actual powered racks in Alabama, and doing it on schedule.
