Cerebras' $1.1 Billion Bet on Digi Power X Sparks 39% Stock Surge

Table of Contents Shares of Digi Power X (DGXX) experienced a substantial rally of approximately 39% on Tuesday following the company’s disclosure of a significant colocation partnership with AI hardware manufacturer Cerebras Systems. Digi Power X Inc., DGXX The partnership encompasses the construction of a specialized 40-megawatt AI data center campus situated in Columbiana, Alabama. Under the initial 10-year arrangement, the contract is estimated at roughly $1.1 billion. Including potential renewal periods, the total contract value may climb to $2.5 billion. This arrangement provides Digi Power X with predictable revenue streams starting from the first day of operational service. Digi Power X $DGXX signed a 10-year deal with Cerebras for a 40 MW AI data center in Alabama, worth about $1.1B initially and up to $2.5B with renewals. Phase 1 is 15 MW by Dec. 2026, with the full 40 MW targeted by Q1 2027. — Wall St Engine (@wallstengine) May 5, 2026 The project is structured in two distinct development phases. The first phase encompasses 15 MW of IT capacity, while the second phase will contribute an additional 25 MW, culminating in a combined 40 MW capacity. The campus infrastructure will adhere to Tier III standards. These specifications are tailored explicitly for the intensive thermal and power density requirements of cutting-edge AI accelerator technology—precisely the type of computational workloads that Cerebras deploys. Construction activities for Phase 1 are commencing without delay. Notably, Digi Power X will self-finance the first phase construction, a significant consideration given the project’s magnitude. The company has already finalized the on-site electrical substation for Phase 1. Grid connectivity has been secured, and a power supply agreement with Alabama Power is fully executed. The Columbiana location was selected based on its robust power infrastructure, favorable regulatory climate, and strategic access to major fiber optic routes throughout the southeastern region. Digi Power X maintains ownership of the property hosting the site. Phase 1 aims for a Ready-for-Service milestone of December 15, 2026. Complete buildout encompassing both phases is projected for completion by the conclusion of Q1 2027. Revenue streams from this partnership are forecasted to begin in the latter part of 2026. Maximum revenue generation is expected to align with the finalization of the complete 40 MW infrastructure deployment. From Cerebras’ perspective, this agreement secures guaranteed data center infrastructure from the initial service date. Such operational certainty is critical for an organization expanding frontier AI computational capabilities. Cerebras Systems has established its reputation through large-scale AI processor technology and computing platforms. The Columbiana facility was characterized as being engineered “from the ground up” to address power density and reliability specifications. The partnership structure delivers mutual advantages. Digi Power X obtains a contracted, long-term revenue pipeline. Cerebras acquires dedicated, custom-designed capacity without undertaking real estate development responsibilities. DGXX is additionally listed on Cboe Canada under the DGX ticker symbol, which rose approximately 38.93% on the announcement. The equity was trading higher by roughly 39% as of Tuesday afternoon in response to the disclosure.