Digi Power X Secures 40MW Cerebras Colocation Deal

Digi Power X entered into a Master Services Agreement with Cerebras Systems to deploy approximately 40 MW of AI computing capacity at its Columbiana, Alabama campus, with an initial 10-year term valued at approximately $1.1 billion and potential contract value up to $2.5 billion if extensions are exercised, according to the company 8-K filing. The agreement covers a purpose-built data center to be delivered in two phases: Phase 1 targeting 15 MW ready-for-service by December 15, 2026, and Phase 2 adding 25 MW to reach 40 MW by the end of Q1 2027, per the 8-K and reporting by Proactive and DataCenterDynamics. The 8-K and Proactive state Phase 1 construction is being self-funded, and the company has completed an on-site substation and secured a power delivery agreement with Alabama Power. Reporting by Seeking Alpha and other market outlets also notes Digi Power X disclosed a separate SubQ AI customer engagement (reported $19.6 million) and calls out elevated execution and dilution risk metrics.

Per press coverage in DataCenterDynamics and Proactive, the Columbiana campus will be built to Tier III standards and optimized for high-density AI accelerator cooling and power delivery. The project will be staged so that initial IT load capacity (Phase 1) is available while Phase 2 depends on securing additional financing and equipment deployment, according to the 8-K. The agreement grants Cerebras exclusive access to the specified capacity and includes expansion options described in the filings and press releases.

Editorial analysis: Large, long-term colocation contracts between hyperspecialized AI compute providers and regional data center developers have become a primary mechanism to match wafer-scale accelerator demand to local power and interconnect capacity. Companies that secure multiyear anchor tenants gain forward revenue visibility but also shoulder execution, capital, and interconnection responsibilities, which frequently determine whether such projects create durable returns or lead to funding pressure.

Editorial analysis: For AI practitioners and infrastructure planners, the deal is noteworthy because it represents a commercial commitment to support high-density, wafer-scale AI accelerators outside traditional hyperscaler campuses, which can influence regional capacity availability and procurement options. The reported timelines and the company statement that Phase 1 is self-funded are operationally relevant; if met, they would bring additional GPU/accelerator colocation capacity to the southeastern US by late 2026 and early 2027, per the 8-K and Proactive reporting. Public commentary in Seeking Alpha and market outlets also highlights valuation and dilution considerations, which matter to investors but are secondary to capacity and interconnection timelines for practitioners.

Editorial analysis: Observers should track three categories of indicators:

• •construction and permitting milestones tied to the December 15, 2026 Phase 1 ready-for-service target in the 8-K
• •financing actions or incremental tenant commitments that would enable Phase 2 capacity buildout, since the 8-K conditions additional capacity on financing and delivery
• •equipment delivery and interconnect provisioning timelines from Cerebras and Digi Power X, which will determine actual service availability. Market coverage and the company 8-K are the primary public sources for these items