Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) earlier this week outlined a significant step in its transition toward AI infrastructure, announcing a $19.6 million contract tied to its flagship Alabama data center project.
In an interview with Proactive, CEO Michel Amar said the agreement represents the company’s first AI-focused contract and serves as validation of its tier-three modular data center design.
Amar explained that Digi Power X Inc, historically involved in Bitcoin mining infrastructure, has pivoted toward AI data centers in response to shifting market demand.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Michel Amar, CEO of Digi Power X. Michel, great to see you. How are you?
Michel Amar: Good morning. TGIF—thank God it’s Friday—so we can try to relax, even though we never relax on the weekend.
You’ve announced positive news, including signing an almost $20 million AI deal. But first, remind everyone about the company and what you do.
Digi Power X is a power infrastructure company. We’ve been in the power business for the last nine to ten years. We started by building tier-one Bitcoin mining centers, and in 2024 we pivoted to AI data center infrastructure. Alabama is our first flagship site where we decided to pivot to AI, and we secured our first contract to validate our tier-three modular system.
We will be running by May 15. We are currently in testing mode and will be running Nvidia GPUs, including the B200 and B300. This is our first contract, which gives us the ability to scale and replicate.
This was almost a $20 million contract. Talk about the momentum you’re building from this.
That first system is very sophisticated and rated tier three, designed for 99.98% availability. It includes two chillers, two generators, and UPS systems. The contract, valued at $19.6 million, covers about one megawatt of power.
In Alabama, we have 70MW of total power availability, translating to about 55MW of IT load. This gives us the potential to replicate this first unit 55 to 60 times. We will scale block by block as we grow financially and operationally.
So you could have multiple contracts within the same site?
It’s actually modular, so we can add more buildings. Our strategy is a hybrid model: GPU-as-a-service or bare metal rentals, and co-location. We are in final discussions to convert a signed LOI into a co-location deal. These are our two revenue streams.
The sector seems to be booming. Are you well positioned?
The industry is already exploding. Demand for power exceeds supply. We are fortunate because we also generate power through a combined cycle gas plant. Hyperscalers are now considering beyond-the-meter power solutions, which increases our value significantly.
Once we validate our first AI facility, we aim to convert our total 400MW capacity into AI data centers, creating significant growth potential.
Congratulations on the progress.
Thank you very much.
Quotes have been lightly edited for style and clarity