Digi Power X Inc. (NASDAQ: DGXX) announced a 10-year Master Services Agreement with Cerebras Systems for a 40-megawatt AI data center in Columbiana, Alabama, valued at $1.1 billion with potential total contract value reaching $2.5 billion including renewal terms.

The facility will be developed in two phases, with Phase 1 comprising 15 MW of IT load targeted for service by December 2026, followed by Phase 2 adding 25 MW for completion by the end of the first quarter of 2027. The data center will be built to Tier III infrastructure standards designed for high-density AI accelerator hardware requirements.

Digi Power X will commence construction immediately on Phase 1, with the company stating it has completed construction of the dedicated on-site substation and finalized grid interconnection with Alabama Power. The company owns the underlying real property and plans to self-fund Phase 1 construction.

"This agreement is transformational for Digi Power X," said Michel Amar, Chairman and Chief Executive Officer. "Signing a $1.1 billion anchor contract with a premier AI compute company is validation of everything we have built."

The Columbiana campus was selected for its power infrastructure access, regulatory environment, and proximity to southeastern U.S. fiber corridors. Revenue from the agreement is expected to commence in late 2026, with full revenue ramp anticipated upon completion of the full deployment.

Digi Power X operates AI infrastructure with approximately 400 MW of secured power across sites in Alabama, New York, and North Carolina. The company's NeoCloudz platform provides GPU-as-a-Service on NVIDIA infrastructure.