Digi Power X Signs First AI Revenue Contract - $19.6 Million, 24-Month SubQ AI Agreement, Validating Operational Launch of AI Factory

Key Takeaways

• Digi Power X secures $19.6M AI contract, its first revenue source.
• Contract includes 15% upfront payment (~$2.95M) with Net‑15 monthly invoicing.
• Deployment uses NVIDIA Blackwell GPUs with 192 GB HBM3e on bare metal.
• Company owns 400 MW power assets, enabling high‑margin, vertically integrated service.
• Capacity for 4,000 GPUs could generate up to $120M annual revenue.

Pulse Analysis

The AI infrastructure market is entering a phase of hyper‑growth, driven by ever‑larger models and the need for dedicated, high‑throughput compute. Digi Power X’s first signed contract with SubQ AI demonstrates that the company’s strategy—combining owned power assets, purpose‑built data centers, and a bare‑metal GPU‑as‑a‑Service (GPU‑aaS) platform—resonates with early adopters seeking predictable performance and cost control. By locking in $19.6 million over two years, Digi Power X not only proves its operational readiness but also establishes a revenue runway that can fund further capacity expansion.

At the heart of the deal is the deployment of NVIDIA’s Blackwell B300 GPUs, featuring 192 GB of HBM3e memory and a high‑speed InfiniBand/RoCE v2 fabric. Delivered through NeoCloudz, the bare‑metal approach gives SubQ AI root‑level control, eliminating the overhead of virtualization and ensuring maximum utilization. Digi Power X’s ownership of roughly 400 MW of power across three states allows it to offer competitive pricing while preserving margins, a distinct advantage over pure‑play colocation providers that must lease power and space.

Looking ahead, Digi Power X’s infrastructure can host up to 4,000 Blackwell GPUs, translating to an estimated $120 million in annualized revenue if fully utilized. The SubQ partnership, with its roadmap to scale to several thousand GPUs, provides a clear growth catalyst. As hyperscale players and frontier AI firms scramble for reliable compute, Digi Power X’s vertically integrated model positions it to capture a meaningful slice of the market, making it a compelling watch for investors focused on the AI infrastructure frontier.