Digi Power X Signs $19.6 Million AI Data Center Deal with SubQ AI
April 24, 2026
Digi Power X Signs $19.6 Million AI Data Center Deal with SubQ AI
Digi Power X has secured its first major customer for AI data center capacity, signing a $19.6 million contract with SubQ AI for bare metal GPU access. The two-year agreement marks a significant shift for the company, which originated as a cryptocurrency miner and is now pivoting to high-performance computing and artificial intelligence infrastructure.
Under the terms of the deal, Digi Power X will provide SubQ AI with access to Nvidia Blackwell GPUs on a bare metal basis through its NeoCloudz GPU-as-a-Service platform. The contract begins on May 15, 2026, and includes an upfront payment of $2.95 million from SubQ AI. While the specific data center location for the deployment has not been disclosed, Digi Power X currently operates facilities in Alabama and New York, with a third site under development in North Carolina.
This agreement represents the first operational commissioning of Digi Power X's AI factory offering and its first named multi-year contract. The company has secured 10 GPU pods, with capacity for up to 4,000 Blackwell B3000 GPUs. Alec Amar, president of Digi Power X, described the deal as a major milestone. "This agreement with SubQ AI represents a major milestone for Digi Power X – our first contracted AI revenue and the official commercial launch of our NeoCloudz bare metal GPU-as-a-Service platform," he said. Amar added that the company intends to rapidly scale its relationship with SubQ AI and welcome additional high-growth AI customers onto its dedicated Blackwell fleet, noting that discussions with hyperscale and frontier AI customers are ongoing.
Justin Dangel, CEO of SubQ AI, emphasized the strategic importance of the partnership. "This initial deployment is the first step in what we expect to be a much larger, long-term relationship with Digi Power X," he said. "Our roadmap calls for scaling to several thousand GPUs over the next few quarters as we advance our proprietary architecture, and the combination of NeoCloudz's bare metal platform, the newest NVIDIA Blackwell silicon, and Digi Power X's owned power and data center capacity gives us a credible runway to grow into that footprint with a single, trusted infrastructure partner."
Digi Power X, formerly known as Digihost, has its roots in cryptocurrency mining, where it placed mining hardware at power plants for itself and other companies. The company announced an AI and HPC-focused subsidiary, US Data Centers, in 2025, along with plans to collaborate with Super Micro to deploy customized B200 GPU rack solutions at its Alabama facility. That site, located in Shelby County's Columbiana, was acquired in June 2022 for $2.75 million and includes 160,000 square feet of office and industrial warehouse space. In addition to Columbiana, Digi Power X owns and operates data centers in Buffalo and North Tonawanda, New York. According to the company's CTO, Jagan Jeyapaul, Digi Power X is also exploring a location in Silicon Valley to accelerate its AI infrastructure roadmap.
The deal signals a broader trend of former crypto miners repurposing their power and infrastructure assets to meet surging demand for AI compute capacity. As the neocloud market grows, companies like Digi Power X are leveraging their existing energy access and data center footprints to compete for high-value AI workloads.
Source: datacenterdynamics
