Duos Technologies signs $500M hosting deal with Axe Compute

Duos Technologies Group, Inc. (NASDAQ: DUOT) announced that two of its project entities have executed five-year hosting service agreements with Axe Compute Inc. (NASDAQ: AGPU), covering an aggregate of 55 megawatts of AI facility capacity across multiple U.S. data center sites.

The agreements are valued at over $500 million, representing aggregate contractual base payments over the initial five-year terms. The figure includes annual escalators but excludes electricity and other usage-based charges. Billing under each agreement is contingent on successful completion, ready-for-service testing, and written acceptance by Axe Compute.

Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to construction, commissioning, performance testing, and Axe Compute's written acceptance. The companies have not disclosed the project locations.

"These executed agreements represent an important advancement of our AI infrastructure strategy and demonstrate our ability to translate development opportunities into long-term commercial relationships," said Doug Recker, Chief Executive Officer of Duos.

"It is a significant milestone in the growth of Axe Compute's AI infrastructure platform," said Chris Miglino, Chief Executive Officer of Axe Compute. "These projects are being designed around the density, cooling, and availability requirements of next-generation GPU systems."

The agreements include renewal options and rights supporting potential future expansion. In connection with the hosting agreements, Duos and Axe Compute have also executed nonbinding term sheets contemplating potential minority investments by Axe Compute in the special-purpose entities associated with the projects, with Duos expected to maintain majority ownership. Any such investments remain subject to definitive documentation and approval processes at both companies.

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