Digi Power

TLDR

• Digi Power
• The deal covers a 40-megawatt AI data center campus in Columbiana, Alabama
• The initial 10-year contract is worth $1.1 billion, with up to $2.5 billion including renewals.
• The facility will be built in two phases, with the first phase targeting a ready date of December 15, 2026
• Revenue is expected to begin in late 2026, with full access targeted for Q1 2027.

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Digi Power

DigiPower X, DGXX

The agreement covers a 40-megawatt AI data center campus in Columbiana, Alabama. The initial 10-year period is valued at approximately $1.1 billion.

The total contract value could reach $2.5 billion if renewal terms are included. The deal gives Digi Power

DigiPower X $DGXX It signed a 10-year deal with Cerebras to build a 40-megawatt AI data center in Alabama, worth about $1.1 billion initially and up to $2.5 billion with renewals. The first phase will have a capacity of 15 MW by December 2026, with the full 40 MW targeted by Q1 2027.

– Wall Street Engine (@wallstengine) May 5, 2026

The facility will be developed in two phases. The first phase covers 15 MW of IT loads, and the second phase adds another 25 MW, bringing the total to 40 MW.

The campus will be built to Tier III infrastructure standards. The specifications are specifically designed to meet the high-density thermal demands of next-generation AI accelerators – the type of workloads that Cerebras runs.

Construction on the first phase begins immediately. Digi Power

The company has already completed construction of the on-site substation for the first phase. The grid interconnection was completed, and a power connection agreement was concluded with Alabama Power.

Columbiana was selected for its energy infrastructure, regulatory environment, and proximity to major fiber corridors in the southeastern United States. Digi Power

Revenue schedule

The first phase targets a ready-for-service date of December 15, 2026. Full deployment across both phases is expected by the end of the first quarter of 2027.

Revenues from the agreement are expected to commence in late 2026. The full revenue ramp-up is targeted to be achieved alongside the completion of the full 40 MW deployment.

Cerebras’ side of the deal

For Cerebras, the agreement guarantees guaranteed data center capacity from day one of service. This kind of certainty is important for a company working to scale its AI computing infrastructure.

Cerebras Systems is known for its AI chips and large-scale computing systems. The Columbiana campus is described as being designed “from the ground up” around energy density and reliability requirements.

The structure of the deal benefits both sides. Digi Power X has a contracted revenue stream. Cerebras obtains dedicated, purpose-built capacity without having to develop the properties themselves.

DGXX is also trading on Cboe Canada under the ticker DGX, which rose approximately 38.93% on the news.

The stock was trading up about 39% as of Tuesday afternoon after the announcement.