Digi Power X Secures $19.6 Million AI Infrastructure Deal as Company Accelerates Data Center Expansion
Digi Power X Secures $19.6 Million AI Infrastructure Deal as Company Accelerates Data Center Expansion
Digi Power X Inc. has announced a major step in its transformation from Bitcoin mining infrastructure toward artificial intelligence data center services, after securing a $19.6 million AI infrastructure contract linked to its flagship Alabama project.
The agreement marks the company’s first AI-focused commercial contract and is seen as an important validation of Digi Power X’s modular Tier 3 data center design. According to Proactive Investors, CEO Michel Amar said the deal supports the company’s plan to scale AI-ready infrastructure as demand for high-performance computing continues to rise.
A Strategic Pivot Toward AI Data Centers
Digi Power X has historically operated in power infrastructure and Bitcoin mining facilities. However, the company began shifting its focus in 2024 toward AI data centers, a market that requires large amounts of reliable power, cooling systems, and advanced computing capacity.
The company’s Alabama site is now positioned as its first major AI infrastructure hub. Digi Power X said the site will support advanced Nvidia GPU systems, including B200 and B300 chips, which are designed for demanding artificial intelligence workloads.
Details of the $19.6 Million Agreement
The contract is valued at approximately $19.6 million and covers around one megawatt of power capacity. The system is designed as a Tier 3 modular data center, which typically means it is built for high availability and operational reliability.
CEO Michel Amar explained that the first system includes backup and support infrastructure such as chillers, generators, and uninterruptible power supply systems. This design is intended to reduce downtime and support continuous AI computing operations.
Alabama Site Offers Larger Expansion Potential
The Alabama facility could become much larger over time. Digi Power X said the site has around 70 megawatts of total power availability, which may translate into approximately 55 megawatts of IT load.
This gives the company room to repeat its first modular AI data center unit many times at the same location. Management believes the modular design allows Digi Power X to expand block by block as demand, capital, and operations grow.
Two Revenue Streams: GPU Rental and Co-Location
Digi Power X is building its AI infrastructure business around two main revenue models. The first is GPU-as-a-service, also known as bare metal GPU rental, where customers rent high-performance computing power directly.
The second model is co-location, where customers place their own equipment inside Digi Power X’s data center facilities and use the company’s power, cooling, and infrastructure support.
The company said it is also working to convert a signed letter of intent into a co-location agreement, which could add another commercial stream to the Alabama site.
Power Supply Becomes a Key Advantage
One of the biggest challenges in the AI data center industry is access to large amounts of dependable electricity. AI workloads require powerful GPUs, and those systems consume significant energy.
Digi Power X believes it has an advantage because it is not only building data center infrastructure but also has access to power generation through a combined-cycle gas plant. This may help the company serve customers that need fast, reliable, and scalable AI computing capacity.
AI Demand Continues to Reshape Infrastructure Markets
The announcement comes as demand for AI computing infrastructure continues to grow across industries. Companies developing AI models, cloud platforms, automation tools, and enterprise software need more GPU capacity and more data center power.
This trend has created opportunities for infrastructure companies that can provide power-rich facilities, advanced cooling, and flexible computing solutions. Digi Power X’s latest contract suggests the company is trying to position itself inside this fast-growing market.
Long-Term Vision: Converting 400MW Capacity
Digi Power X said its broader goal is to convert up to 400 megawatts of total capacity into AI-focused data center infrastructure over time. If successful, this would represent a major expansion from its first Alabama deployment.
The company’s leadership views the first contract as an important proof point. Once the first AI facility is fully validated, Digi Power X plans to use the same model across additional capacity.
Market Significance for Investors
For investors, the announcement highlights Digi Power X’s shift into a sector that is receiving strong attention from technology companies, cloud providers, and infrastructure investors. However, the company’s growth will depend on execution, financing, customer demand, and the ability to scale operations efficiently.
As with any public company development, the announcement should not be viewed as investment advice. Investors should review company filings, market risks, and independent financial guidance before making decisions.
Conclusion
Digi Power X’s $19.6 million AI infrastructure deal represents a meaningful milestone in the company’s move away from its earlier Bitcoin mining focus and toward AI data center services. With its Alabama flagship project, modular Tier 3 design, GPU rental model, and access to significant power capacity, the company is aiming to build a scalable platform for the growing artificial intelligence economy.
If Digi Power X can successfully launch, validate, and expand its first AI-focused facility, the company may be well placed to pursue additional contracts in a market where power, speed, and reliability are becoming increasingly valuable.
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