Home/Deal Room/Digi Power X signs $1.1B Cerebras AI colocation deal

Data centers · Evidence brief

Digi Power X signs $1.1B Cerebras AI colocation deal

Digi Power X + Cerebras Systems

Primary sourceSEC summary2026-05-04
Deal structureAI data-center colocation / master services agreement
GeographyColumbiana, Alabama
Infrastructure layersData centers + chips / compute + cloud capacity
Disclosed scale$1.1B initial 10-year contract value for approximately 40 MW in Columbiana, Alabama; potential $2.5B with a seven-year extension

Why it matters

The strategic read

Gives Cerebras a named physical AI-inference/training capacity lane outside the hyperscaler GPU cloud stack. A wafer-scale AI-chip company is locking a 40 MW Alabama campus under a long-duration colocation contract, turning a small infrastructure operator into a concrete Cerebras deployment partner.

Source-supported terms

What was disclosed

  1. 01

    Digi Power X entered a Data Center Colocation and Master Services Agreement with Cerebras Systems on May 4, 2026.

  2. 02

    The agreement covers approximately 40 MW for AI computing at Digi Power X’s AI data-center campus in Columbiana, Alabama.

  3. 03

    Digi Power X disclosed approximately $1.1B total contract value for the initial 10-year term, subject to the company meeting its obligations.

  4. 04

    The total potential contract value is approximately $2.5B assuming one seven-year extension.

  5. 05

    Phase 1 is 15 MW with a targeted ready-for-service date of December 15, 2026; full Phase 2 deployment to 40 MW is targeted by the end of fiscal Q1 2027 and is conditioned on Digi Power X securing adequate Phase 2 financing.

  6. 06

    Cerebras receives an exclusive license to access the data center for the duration of the agreement.

Disclosure boundary

What is known—and what is not

SEC-filed 8-K summary with a redacted master services agreement filed as Exhibit 10.1; pricing details, schedules, some exhibits, financing conditions, and certain commercial terms are not fully public.