Digi Power X (DGXX) announced a massive new partnership on Tuesday, May 5, 2026, to build a giant data center in Columbiana, Alabama. The firm reached a deal with Cerebras Systems to provide a dedicated space for powerful artificial intelligence computers. This agreement is worth $1.1 billion over the first ten years, though the total value could jump to $2.5 billion if the contract is renewed.
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Investors absolutely loved the news, and Digi Power X’s stock price skyrocketed 36.20% in pre-market trading, reaching $5.38 before the normal market opened. You can see this dramatic rise highlighted in the chart below.
Digi Power X Secures a Billion-Dollar Agreement
This new contract gives Digi Power X a steady stream of money for at least a decade. The company stands out from its rivals because it owns the actual land where the data center is being built. Instead of renting space from someone else, the firm has total control over its property, which makes the project more stable. Michel Amar, the head of the company, stated that this agreement is a “transformational” move that proves the firm is now a leader in the tech industry.
The team chose the site in Columbiana because it has great access to electricity and fast fiber-optic internet lines. Construction is starting right away to ensure the building is ready as soon as possible. To handle the work efficiently, the company is splitting the project into two steps. The first part will handle 15 megawatts of power, and the second part will add another 25 megawatts to reach a total of 40.
Cerebras Systems Gets a Special Building
Cerebras Systems needs this special facility because its AI machines are incredibly powerful and generate a lot of heat. Consequently, the building is being constructed to stay very cool and reliable even when running at full speed. The goal is to have the first section finished and ready for use by December 15, 2026. Following that, the entire campus should be completely finished and running by the end of March 2027.
Is Digi Power X Stock a Good Buy?
Turning to the Street, Digi Power X stock (DGXX) boasts a Moderate Buy consensus, based on two Buy recommendations. The average 12-month DGXX stock price target is $6, implying a 15.6% upside from the current price.
