Digi Power X Signs $1.1 Billion AI Colocation Deal with Cerebras for 40 MW Alabama Data Center
May 5, 2026
Digi Power X Signs $1.1 Billion AI Colocation Deal with Cerebras for 40 MW Alabama Data Center
Digi Power X Inc. (Nasdaq: DGXX), an AI data center infrastructure operator, has entered into a landmark Master Services Agreement with Cerebras Systems, a leading AI compute company, to colocate a purpose-built 40-megawatt data center campus in Columbiana, Alabama. The deal underscores the accelerating demand for high-density, purpose-built infrastructure to support next-generation AI workloads.
The initial 10-year term of the agreement is valued at approximately $1.1 billion, with total potential contract value reaching up to $2.5 billion when including renewal options. The structure provides Digi Power X with long-term revenue visibility while guaranteeing Cerebras dedicated data center capacity from the first day of service. Michel Amar, Chairman and CEO of Digi Power X, 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," he said. "We are no longer building toward the top tier of this industry. We are in it."
The facility will be developed in two phases: Phase 1 delivers 15 MW of IT load, followed by Phase 2 adding an incremental 25 MW, for a combined total of 40 MW. Construction on Phase 1 begins immediately, with a target ready-for-service date of December 15, 2026, and full deployment expected by the end of the first quarter of 2027. The campus is being built to Tier III infrastructure standards, optimized for the high-density thermal requirements of next-generation AI accelerator hardware.
The Columbiana site was selected for its robust power infrastructure, favorable regulatory environment, and proximity to major fiber corridors serving the southeastern United States. Digi Power X owns the underlying real property, providing a balance-sheet-backed development platform that differentiates the company from lease-dependent competitors. This agreement reflects the deep commitment both companies are making to the Columbiana campus, a facility designed from the ground up around the power density and reliability demands of frontier AI compute.
Source: yahoo
