This is a transformative anchor contract that validates DGXX's infrastructure capabilities and provides multi-year revenue visibility. Monitor Phase 1 delivery progress toward December 2026 and any financing announcements for Phase 2. The stock may re-rate as the market prices in this contract backlog. Watch for potential equity/debt offerings to fund Phase 2 expansion.
Price Chart
Executive Summary
Digi Power X Inc. (DGXX) entered into a 10-year colocation agreement with Cerebras Systems for a 40 MW AI data center in Columbiana, AL. The initial term is valued at approximately $1.1 billion, with total potential value up to $2.5 billion including a 7-year extension. Phase 1 (15 MW) targets December 2026, Phase 2 (25 MW) is conditional on financing. The agreement provides long-term revenue visibility but carries execution and financing risks.
Key Financial Metrics
Key Facts
- 10-year colocation agreement with Cerebras Systems for 40 MW AI data center in Columbiana, AL
- Initial term contract value approximately $1.1 billion; total potential value up to $2.5 billion with 7-year extension
- Phase 1 (15 MW) targeted ready-for-service December 15, 2026; Phase 2 (25 MW) conditional on financing, targeted Q1 2027
- Phase 1 construction self-funded; on-site substation complete, grid interconnection finalized with Alabama Power
- Cerebras has exclusive license to the facility; take-or-pay colocation fee structure
- Operator represents sufficient cash reserves for Phase 1 buildout without additional capital
- Company owns the underlying real property (fee simple), differentiating from lease-dependent competitors
Financial Impact
Initial term contract value ~$1.1B; total potential value ~$2.5B including extension. Revenue commencement expected late 2026, full ramp Q1 2027.
Risk Factors
- Phase 2 (25 MW) is conditional on securing financing; failure could limit total contract value to ~$1.1B
- Construction execution risk: Phase 1 delay beyond December 2026 triggers escalating daily credits to Cerebras
- Concentration risk: single customer (Cerebras) for entire 40 MW facility
- Capital requirements: self-funding Phase 1 may strain balance sheet; Phase 2 financing terms unknown
- Cerebras is a private AI company; its financial health and ability to pay over 10-year term is unverified
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-053566 |
| Document: ea0289585-8k_digi.htm | 0001213900-26-053566 |
| Document: ea028958501ex99-1.htm | 0001213900-26-053566 |
| Document: 0001213900-26-053566-index-headers.html | 0001213900-26-053566 |
| Document: 0001213900-26-053566-index.html | 0001213900-26-053566 |
| Document: 0001213900-26-053566.txt | 0001213900-26-053566 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 5w ago | EFFECT | $3.66 $2.96 | ▲ +19.13% | ▲ +22.30% | $2.22 (+39.34%) |
Aug 21, 2026 9w ago | Insider Cluster | $4.07 $4.36 | ▲ +7.13% | ▲ +7.65% | $2.22 (−45.45%) |
Aug 14, 2026 10w ago | 8-K | $3.97 $3.73 | ▼ −6.05% | ▼ −4.05% | $2.22 (−44.08%) |
Jul 7, 2026 15w ago | 8-K | $4.42 $3.85 | ▼ −12.90% | ▼ −14.23% | $2.22 (−49.77%) |
May 15, 2026 23w ago | 8-K | $7.54 $7.02 | ▼ −6.90% | ▼ −9.02% | $2.22 (−70.56%) |
May 8, 2026 24w ago | 8-K | $7.43 $5.90 | ▲ +20.59% | ▲ +20.29% | $2.22 (+70.12%) |
May 8, 2026 24w ago | 8-K | $6.63 $6.04 | ▼ −8.90% | ▼ −8.92% | $2.22 (−66.52%) |
Apr 20, 2026 27w ago | 8-K | $3.69 $7.24 | ▲ +96.21% | ▲ +92.00% | $2.22 (−39.84%) |
Mar 31, 2026 29w ago | 8-K | $2.16 $3.11 | ▲ +43.98% | ▲ +34.26% | $2.22 (+2.78%) |
US Market Status
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