Digi Power X signed its first significant AI revenue contract worth $19.6M over 24 months, validating its AI power infrastructure business model.
Digi Power X Inc. (Nasdaq: DGXX, Cboe Canada: DGX), a Miami-based AI infrastructure operator, announced on April 20, 2026, that it has entered into a bare metal GPU rental agreement with SubQ AI, a next-generation AI company. The 24-month contract carries an expected total contract value of approximately $19.6 million and becomes effective May 15, 2026. Under the agreement, Digi Power X will deliver exclusive, dedicated access to a fleet of latest-generation NVIDIA Blackwell GPUs, operated on a bare metal basis through NeoCloudz, the Company's GPU-as-a-Service platform, at its AI data center.
The deployment follows NVIDIA reference architecture and is engineered to Rated 3 standards, with redundant utility feeds, N+1 UPS, and a CDU and chiller-based two-loop cooling architecture purpose-built for high-density accelerated compute. The systems feature 100% latest-generation NVIDIA Blackwell GPUs with 192 GB HBM3e on a high-speed InfiniBand/RoCE v2 fabric. The agreement is structured as a fully dedicated, non-virtualized bare metal deployment, giving SubQ root-level control and exclusive use of the contracted GPU fleet and supporting infrastructure, with a 15% non-refundable upfront payment of approximately $2.95 million and monthly invoicing payable Net-15.
Alec Amar, President of Digi Power X, stated: "This agreement with SubQ AI represents a major milestone for Digi Power X - our first contracted AI revenue and the official commercial launch of our NeoCloudz bare metal GPU-as-a-Service platform. We've built scalable, vertically integrated infrastructure and we're moving at full speed. This deal is just the beginning. We intend to rapidly scale our relationship with SubQ AI and welcome additional high-growth AI customers onto our dedicated Blackwell fleet. We continue to advance discussions with additional hyperscale and frontier AI customers and expect to provide further operational updates in the coming weeks."
Justin Dangel, Chief Executive Officer of SubQ AI, noted: "This initial deployment is the first step in what we expect to be a much larger, long-term relationship with Digi Power X. Our roadmap calls for scaling to several thousand GPUs over the next few quarters as we advance our proprietary architecture, and the combination of NeoCloudz's bare metal platform, the newest NVIDIA Blackwell silicon, and Digi Power X's owned power and data center capacity gives us a credible runway to grow into that footprint with a single, trusted infrastructure partner." Digi Power X has already secured 10 pods of infrastructure capacity—approximately 4,000 NVIDIA Blackwell B300 GPUs—representing up to approximately $120 million of potential annualized revenue at full deployment and utilization. Jagan Jeyapaul, Chief Technology Officer of Digi Power X, added: "Bringing our first GPU cluster online moves Digi Power X from building infrastructure to generating AI revenue. We're evaluating a Silicon Valley presence to accelerate our AI infrastructure roadmap and hire senior AI engineers. This deployment is the foundation for scaling NeoCloudz into a leading GPU-as-a-Service platform."
Digi Power X operates a vertically integrated portfolio of power assets and data center capacity across Alabama, New York, and North Carolina, with approximately 400 MW of secured power across its sites. The Company's NeoCloudz platform delivers GPU-as-a-Service on dedicated, bare metal NVIDIA infrastructure. SubQ AI is a next-generation artificial intelligence company developing proprietary architecture for scalable, efficient AI training and inference.