Digi Power X reports first AI compute revenue, reaffirms $1.1 billion Alabama contract
Digi Power X (NASDAQ:DGXX) reported Q2 revenue of about $6.6M and its first AI compute revenue, about $1.1M from GPU bare-metal rental over five weeks. It invested about $30M in GPU infrastructure (0.6 MW). Adjusted EBITDA rose to about $3.3M; net loss was about $14.4M. It reaffirmed a $1.1B 10-year Alabama contract, with Phase 1 15 MW due Dec 2026 and Phase 2 25 MW by Mar 2027.
How this was made
The 30-second read
Why it matters
The article provides a new monetization milestone (first AI compute revenue), operational proof points (100% uptime since May 2026), and a reaffirmed long-duration Alabama contract with phased capacity targets, alongside a stated path to an annualized $250M to $300M revenue run-rate by Q3 2027.
Market read
Traders can reassess DGXX’s execution and monetization trajectory using the disclosed first AI compute revenue, uptime, and the specific Alabama build schedule and contracted revenue value.
What to watch
Net loss of about $14.4 million in the quarter and the capital intensity (about $30 million invested for 0.6 MW deployed) could keep valuation sensitive to funding needs and execution risk on the 15 MW and 25 MW phases.
Background
Digi Power X positions itself as an AI data center infrastructure operator, transitioning from legacy mining/colocation and energy sales toward GPU bare-metal and AI compute services.
Ticker impact
Digi Power X reports first AI compute revenue of about $1.1 million and reaffirms a $1.1 billion 10-year Alabama contract with phased MW targets.
Likely positive bias for DGXX on renewed AI-infrastructure monetization credibility, tempered by the reported $14.4 million quarterly net loss.
The article discloses new operating metrics (first AI compute revenue, uptime, deployed MW) plus specific contracted revenue and construction milestones, which can re-rate risk for an early-stage infrastructure operator. However, the magnitude of losses and the still-small revenue base limit immediate upside conviction.
Market effects
Reinforces demand narrative for AI data-center power and GPU bare-metal services, potentially supporting sentiment toward early-stage AI infrastructure operators.
Alabama project milestones may attract incremental attention from regional infrastructure and power-adjacent investors.
Adds one more datapoint to the broader AI compute supply chain, but impact is company-specific rather than system-wide.
Counterpoint
First AI compute revenue is only about $1.1 million over roughly five weeks, so the market may over-extrapolate before larger deployments ramp.
Key entities
- companyDigi Power X Inc
Reports Q2 results, first AI compute revenue, and reaffirmed $1.1B Alabama 10-year contracted revenue with phased MW delivery.
- personMichel Amar
CEO quoted on cash position, no debt, and the transformation into an AI infrastructure company.
- personAlec Amar
President and co-founder quoted emphasizing delivery track record for hyperscale customers and lenders.
