Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX), the AI data center infrastructure operator, has signed a Master Services Agreement with AI computing company Cerebras Systems to colocate a purpose-built, 40-megawatt data center campus in Columbiana, Alabama, the company announced Tuesday.
Shares of Digi Power X surged on the news, up almost 30% on Tuesday morning.
The initial 10-year term is valued at approximately $1.1 billion, with a total potential contract value of up to $2.5 billion inclusive of renewal terms. Cerebras also holds an expansion option worth an additional $1.4 billion.
Revenue from the agreement is expected to commence in late 2026, with full revenue ramp upon completion of the facility, targeted for Q1 2027.
Digi Power X will develop and deliver the Columbiana facility in two phases: Phase 1 comprising 15 MW of IT load, followed by Phase 2 delivering an incremental 25 MW for a combined total of 40 MW. The facility will be built to Tier III infrastructure standards, optimized for the high-density thermal requirements of next-generation AI accelerator hardware.
Construction on Phase 1 begins immediately, with Phase 1 Ready-for-Service targeted for mid-December 2026, and full deployment by the end of Q1 2027. Phase 1 construction is being self-funded by the company.
The Columbiana campus was selected for its access to power infrastructure, a favorable regulatory environment, and proximity to major fiber corridors serving the southeastern US. Digi Power X owns the underlying real property.
The company has already completed construction of the dedicated on-site substation serving Phase 1, with grid interconnection finalized and a power delivery agreement in place with Alabama Power.
Digi Power X CEO Michel Amar called the agreement "transformational” for the company. "Signing a $1.1 billion anchor contract with a premier AI compute company is validation of everything we have built — our team, our sites, our infrastructure capabilities, and our vision for what a next-generation data center operator looks like. We are no longer building toward the top tier of this industry. We are in it."
Alec Amar, president of Digi Power X, said the deal signals the company's standing in the AI infrastructure sector. "Closing a contract of this magnitude with one of the prominent emerging companies of the AI era signals Digi Power X is a serious player operating at the highest level," he said. "This is the kind of landmark transaction that we believe will open the door to additional sophisticated tenants, lenders, and partners."
Hans Vestberg, senior advisor to Digi Power X and former CEO of Verizon Communications, compared the scale of the AI infrastructure buildout to the rollout of 4G and 5G networks. "This agreement reflects Digi Power X's vision, the strength of its team, and its ability to execute as a foundational player," he said.
Vestberg also serves as a member of the board of directors of BlackRock.