Digi Power X Secures $1.1B AI Deal as Shares Surge 23.5%

Digi Power X secures a ten-year, $1.1B contract with Cerebras Systems for a 40MW AI data center in Alabama, sending stock up 23.5% amid strong investor demand.

Digi Power X has pulled off a landmark deal that marks a decisive shift in its corporate trajectory, signing a ten-year service agreement with Cerebras Systems to build a 40-megawatt AI data center in Columbiana, Alabama. The contract, initially valued at roughly $1.1 billion, carries optional extensions that could push the total to $2.5 billion.

The project unfolds in two phases. The first 15 megawatts are slated to go live by mid-December 2026, with full capacity expected by the end of the first quarter of 2027. Power supply has already been secured through Alabama Power, and the company already owns the land for the campus.

To fund construction, Digi Power X is tapping a $750 million capital reserve drawn from an ongoing share registration program. The move underscores the company's reliance on external financing — it is not yet profitable and must sustain investor confidence to execute its growth plans.

Investors have responded enthusiastically. The stock jumped 23.5 percent to €4.17 on the day of the announcement, bringing its twelve-month gain to roughly 247 percent. That rally builds on earlier momentum: just days before, the shares had climbed eight percent in a single session to €3.66, and over the prior week they had surged about 34 percent.

The broader market backdrop makes the performance stand out. While the Dow Jones and Nasdaq have faced selling pressure, Digi Power X has drawn investors seeking resilient plays in data infrastructure and specialized technology services. The stock now trades well above its 50-day moving average of €2.35, and the Relative Strength Index sits at 38.9 — a level that, despite the recent run-up, does not signal overheating. Year-to-date, the shares are up more than 56 percent.

The company's immediate focus is on completing the Alabama facility on schedule, with first revenue from the Cerebras contract expected by late 2026. Market observers will be watching for further sector-wide catalysts in the second quarter, particularly around hardware investment trends and digital network expansion, to gauge whether the current valuation can hold.