Digi Power X Signs $1.1 Billion AI Data Center Deal with Cerebras
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy DGXX?
Source: seekingalpha
- Agreement Signing: Digi Power X has signed a 10-year colocation agreement with Cerebras Systems for a 40-megawatt AI data center in Alabama, with an initial contract value of approximately $1.1 billion, indicating the company's strong positioning in the AI infrastructure sector.
- Potential Contract Value: The total potential contract value could reach up to $2.5 billion, including renewal terms, which not only provides Digi Power X with a substantial revenue outlook but also enhances its competitive edge in the market.
- Construction Plans: The facility will be developed in two phases, with construction starting immediately and initial service targeted for December 2026, reflecting the company's responsiveness to rapid market demands.
- Strategic Implications: This partnership not only solidifies Digi Power X's position in the AI data center market but also lays the groundwork for future expansion and technological innovation, further advancing the company's leadership in digital transformation.
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Analyst Views on DGXX
Wall Street analysts forecast DGXX stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.630
Low
5.00
Averages
6.00
High
7.00
Current: 6.630
Low
5.00
Averages
6.00
High
7.00
About DGXX
Digi Power X Inc. is a vertically integrated artificial intelligence (AI) and energy infrastructure company. The Company designs and deploys modular tier three data centers through its AI-Ready Modular Solution (ARMS) platform and offers enterprise-grade GPU compute through its NeoCloud portal, leveraging advanced NVIDIA GPU technology and secured energy infrastructure. Through its subsidiary, US Data Centers, Inc. (US Data Centers), it is focused on creating a platform dedicated entirely to delivering artificial intelligence (AI) and HPC solutions, ensuring purpose-built infrastructure for computing. Its segments include cryptocurrency mining, sales of energy and electricity and colocation services. With multiple sites, including its combined cycle and high-capacity substations, the Company enhances the energy grid, supporting both industrial clients and broader energy markets. It operates Bitcoin mining sites and focuses on procuring power from renewable energy sources.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Market Demand: The number of shares offered by Cerebras has increased from 28 million to 30 million, reflecting robust investor interest in AI infrastructure and further solidifying its position against Nvidia in the AI chip market.
- Significant Financial Performance: Cerebras reported revenue of $270.3 million for the first nine months of 2025, a substantial increase from $75.2 million in the same period last year, despite posting a net loss of $56.4 million, highlighting the challenges faced amid rapid expansion.
- Strategic Partnership Agreements: Cerebras has signed multi-billion-dollar contracts with Digi Power X to provide 40 megawatts of computing power, enhancing its market position in AI data centers, while a $10 billion deal with OpenAI is driving technology integration and application.
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- Strong Stock Surge: Following the announcement, Digi Power X's shares surged over 29% on Tuesday and gained more than 8% in premarket trading on Wednesday, reflecting strong market optimism and a five-day rally that underscores investor confidence in the deal.
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- Strong Market Demand: The number of shares offered by Cerebras has increased from 28 million to 30 million, reflecting robust investor interest in AI infrastructure and further solidifying its position against Nvidia in the AI chip market.
- Significant Financial Performance: Cerebras reported revenue of $270.3 million for the first nine months of 2025, a substantial increase from $75.2 million in the same period last year, despite posting a net loss of $56.4 million, highlighting the challenges faced amid rapid expansion.
- Strategic Partnership Agreements: Cerebras has signed multi-billion-dollar contracts with Digi Power X to provide 40 megawatts of computing power, enhancing its market position in AI data centers, while a $10 billion deal with OpenAI is driving technology integration and application.
See More
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- Retail Interest Spike: Shares of Digi Power X surged over 5% in overnight trading, with retail message volumes increasing by 258% and watchers up by 33%, indicating strong investor interest in its infrastructure deal, which could further drive stock price appreciation.
- ATM Program Expansion: Digi Power X has expanded its at-the-market equity program by $100 million, raising the total potential offering to $175 million, signaling confidence in future growth and potentially providing funding support for upcoming projects.
See More
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- Amphenol Stock Pullback: Amphenol's stock has slightly decreased, which analysts see as a good buying opportunity, demonstrating market confidence in its long-term growth prospects, particularly amid ongoing demand in the connectors and sensors market.
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See More
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- Massive Deal Size: Digi Power X's colocation AI data center agreement with Cerebras Systems is valued at up to $2.5 billion, expected to generate $1.1 billion in revenue over the next decade, further solidifying its position among top-tier data center operators.
- Strong Stock Surge: Following the announcement, Digi Power X's shares surged over 29% on Tuesday and gained more than 8% in premarket trading on Wednesday, reflecting strong market optimism and a five-day rally that underscores investor confidence in the deal.
- Debt-Free Advantage: Despite the significant stock price increase, investors on Stocktwits discussed the company's substantial undervaluation relative to its debt-free balance sheet and the new billion-dollar contract, indicating a disconnect in market perception of its growth potential.
- Phased Project Implementation: Digi Power X will construct the data center on land it already owns, with 15 megawatts of capacity expected to come online by mid-December and the remaining 25 megawatts by the end of Q1 next year, ensuring smooth project rollout and long-term revenue generation.
See More
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- Data Center Construction: Digi Power X will begin building a data center in Columbiana, Alabama, with an initial 15 MW of computing power expected to go live by mid-December, followed by the remaining 25 MW by the end of Q1 next year, positioning the company to capitalize on surging AI computing demand.
- Long-Term Revenue Source: The agreement is valued at $1.1 billion over ten years, with an option for Cerebras to expand by an additional $1.4 billion, showcasing Digi Power X's strong market position and long-term revenue visibility in the AI sector.
- Significant Stock Surge: Following the announcement, Digi Power X's shares surged over 27%, marking its best single-day gain in 18 months, reflecting strong market confidence in the company's growth potential amid rising demand for AI computing power.
- Retail Investor Sentiment Shift: On Stocktwits, retail sentiment for DGXX shifted from 'neutral' to 'extremely bullish', with message volumes quadrupling in 24 hours, indicating investor optimism about future contracts and further driving the stock price upward.
See More
