Digi Power X (NASDAQ:DGXX) has taken a decisive step into the upper tier of AI infrastructure providers, signing a landmark colocation agreement with Cerebras Systems to develop a 40-megawatt AI-optimized data center campus in Columbiana, Alabama. The deal carries an initial 10-year value of approximately $1.1 billion, with potential expansion to $2.5 billion, positioning it as a transformative moment not only for the company, but for the broader race to build next-generation compute capacity.
At its core, the agreement reflects a structural shift in the AI economy: demand for high-density compute is no longer speculative, it is contracted, long-term, and capital intensive. Digi Power X’s approach, owning land, securing power infrastructure upfront, and building purpose-designed facilities, gives it a strategic edge over competitors reliant on leased assets or retrofitted data centers. The Columbiana site, backed by grid interconnection and a finalized power agreement with Alabama Power, removes two of the most common bottlenecks in large-scale deployments and accelerates the path to revenue generation.
The project will roll out in two phases, beginning with 15 MW of IT load and expanding to the full 40 MW capacity, engineered to Tier III standards and optimized for the thermal demands of advanced AI hardware. Construction is already underway, with Phase 1 targeted for service by December 2026 and full deployment expected by Q1 2027. Importantly, Digi Power X is self-funding the initial phase, an assertive signal of confidence in both execution and long-term demand.
Beyond the headline numbers, the strategic implications are significant. Locking in a high-profile AI compute tenant like Cerebras provides not just revenue visibility, but validation. In an increasingly competitive market where hyperscalers and specialized AI firms are racing to secure capacity, this type of anchor contract can serve as a catalyst, attracting additional tenants, financing partners, and institutional attention.
The broader narrative is clear: AI infrastructure is entering a phase reminiscent of the early days of 4G and 5G deployment, capital-heavy, infrastructure-driven, and foundational to future economic growth. Digi Power X is making a calculated bet that owning and scaling purpose-built assets will position it as a core enabler of that future. If execution matches ambition, this deal could mark the company’s transition from emerging player to established force in the AI data center ecosystem.