TLDR
- Digi Power X (DGXX) stock jumped ~39% after announcing a Master Services Agreement with Cerebras Systems
- The deal covers a 40 MW AI data center campus in Columbiana, Alabama
- Initial 10-year contract is valued at $1.1 billion, with up to $2.5 billion including renewals
- The facility will be built in two phases, with Phase 1 targeting a ready date of December 15, 2026
- Revenue is expected to begin in late 2026, with full ramp targeted in Q1 2027
Digi Power X (DGXX) stock surged roughly 39% on Tuesday after the company announced a major colocation deal with AI chip company Cerebras Systems.
The agreement covers a purpose-built 40 megawatt AI data center campus in Columbiana, Alabama. The initial 10-year term is valued at approximately $1.1 billion.
Total contract value could reach $2.5 billion if renewal terms are included. The deal gives Digi Power X long-term revenue visibility from day one of service.
Digi Power X $DGXX signed a 10-year deal with Cerebras for a 40 MW AI data center in Alabama, worth about $1.1B initially and up to $2.5B with renewals. Phase 1 is 15 MW by Dec. 2026, with the full 40 MW targeted by Q1 2027.
— Wall St Engine (@wallstengine) May 5, 2026
The facility will be developed in two phases. Phase 1 covers 15 MW of IT load, and Phase 2 adds another 25 MW, bringing the total to 40 MW.
The campus will be built to Tier III infrastructure standards. The specs are designed specifically for the high-density thermal demands of next-generation AI accelerator hardware — the kind of workloads Cerebras runs.
Construction on Phase 1 starts immediately. Digi Power X is self-funding Phase 1 construction, which is worth noting given the scale of the project.
The company has already completed the on-site substation for Phase 1. Grid interconnection is finalized, and a power delivery agreement with Alabama Power is in place.
Columbiana was chosen for its power infrastructure, regulatory environment, and proximity to major fiber corridors in the southeastern United States. Digi Power X owns the underlying real property at the site.
Revenue Timeline
Phase 1 is targeting a Ready-for-Service date of December 15, 2026. Full deployment across both phases is expected by the end of Q1 2027.
Revenue from the agreement is expected to begin in late 2026. Full revenue ramp is targeted alongside the completion of the full 40 MW deployment.
The Cerebras Side of the Deal
For Cerebras, the agreement locks in guaranteed data center capacity from the first day of service. That kind of certainty matters for a company scaling frontier AI compute infrastructure.
Cerebras Systems is known for its large-scale AI chips and compute systems. The Columbiana campus was described as being designed “from the ground up” around power density and reliability demands.
The deal structure benefits both sides. Digi Power X gets a contracted revenue stream. Cerebras gets dedicated, purpose-built capacity without having to develop the real estate itself.
DGXX also trades on Cboe Canada under the ticker DGX, which rose approximately 38.93% on the news.
The stock was trading up around 39% as of Tuesday afternoon following the announcement.
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