Digi Power X Lands $19.6M AI Deal, Launches NeoCloudz GPU Platform

Why It Matters

The contract validates Digi Power X’s pivot to AI infrastructure, giving it a competitive edge by coupling proprietary power generation with modular GPU capacity, a combination increasingly critical for hyperscalers seeking reliable, low‑latency compute.

Key Takeaways

• Digi Power X secures $19.6M AI data center contract.
• First AI facility in Alabama will run Nvidia B200/B300 GPUs.
• Modular design enables scaling up to 55‑60× the initial capacity.
• Company pursues GPU‑as‑a‑service and co‑location revenue streams now.
• Owns power generation, positioning it for “beyond‑the‑middle” demand.

Summary

Digi Power X announced a $19.6 million contract to build its first AI‑focused data center in Alabama and unveiled the NeoCloudz GPU platform, marking a shift from Bitcoin mining to artificial‑intelligence infrastructure.

The deal covers a one‑megawatt, tier‑three modular system that will run Nvidia B200 and B300 GPUs, delivering 99.98% availability with two chillers, generators and UPS. At a projected 1.3 PUE, the site can support roughly 55 MW of IT load, and the company’s 70 MW power capacity allows scaling the footprint 55‑60 times.

CEO Michel Amar highlighted the “beyond‑the‑middle” power model, noting that Digi Power X owns a combined‑cycle gas plant and can supply power beyond grid limits. He also outlined two revenue tracks—GPU‑as‑a‑service and co‑location—supported by a pending LOI for a co‑location agreement.

If the pilot succeeds, Digi Power X could convert its 400 MW of existing capacity into AI data centers, tapping the surging demand from hyperscalers for reliable, on‑site power. The modular approach and dual‑revenue model position the firm to capture a sizable share of the rapidly expanding AI infrastructure market.

Original Description

Digi Power X CEO Michel Amar joined Steve Darling from Proactive yo announce a significant commercial milestone, revealing the company has signed a 24-month bare metal GPU rental agreement with SubQ AI, a next-generation artificial intelligence company. The contract carries an expected value of approximately $19.6 million and is set to commence on May 15, 2026.

The agreement marks Digi Power X’s first contracted AI revenue and the official commercial launch of its NeoCloudz bare metal GPU-as-a-Service platform. Amar emphasized that the company has been building scalable, vertically integrated infrastructure to support high-performance computing demand and is now moving aggressively to capitalize on growing AI market opportunities. He added that discussions with additional hyperscale and frontier AI customers are ongoing, with further updates expected in the near term.

Under the terms of the agreement, Digi Power X will provide SubQ AI with exclusive, dedicated access to a fleet of next-generation NVIDIA Blackwell GPUs. These systems will be delivered on a bare metal basis through the NeoCloudz platform, enabling direct, high-performance access without virtualization overhead—an increasingly attractive solution for advanced AI workloads.

Amar explained that the infrastructure supporting the deployment has been purpose-built for high-density accelerated computing. The systems will operate within a Rated 3-engineered AI data center featuring redundant utility feeds, N+1 uninterruptible power supply (UPS) systems, and a sophisticated two-loop cooling architecture that combines coolant distribution units (CDUs) with chiller-based systems.

Importantly, the facility is fully owned by Digi Power X, including both power infrastructure and real estate, allowing the company to maintain stronger margins while delivering reliable, enterprise-grade performance. The deployment follows NVIDIA reference architecture, ensuring optimal efficiency and scalability for demanding AI applications.

With its NeoCloudz platform now commercially active and anchored by a major contract, Digi Power X is positioning itself as a growing player in the rapidly expanding AI infrastructure and GPU-as-a-service market.

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