Key Highlights

● Digi Power X received a US$200 million debt financing commitment for its Alabama data centre.

● The financing is expected to close within 90 days and sits at project vehicle level.

● Phase 1 of the 40 MW Alabama project is expected by December 2026.

● Second-quarter revenue was about US$6.6 million, with contracted AI revenue of about US$1.1 billion.

The financing commitment

Digi Power X Inc. (NASDAQ:DGXX) announced on 13 October 2026 a commitment letter for US$200 million of debt financing to complete a 40 MW AI data centre in Columbiana, Alabama. The lender was described only as a major lending institution, with the financing syndicated by Goldman Sachs (NYSE:GS). The company expects the financing to close within 90 days, and said it would be structured at the project special purpose vehicle level, with an unsecured company guarantee through project completion and for some limited other matters.

A project-level structure generally means lenders look mainly to the project's cash flows, although the guarantee leaves some exposure at company level. No interest rate or maturity was given.

Conditions and timetable

The commitment is not yet a closed loan. Closing depends on definitive documentation, the satisfaction of various conditions and the lender completing its diligence, and the release lists the risk that the commitment could be terminated or modified. The company expects Phase 1 of the Alabama project by December 2026 and Phase 2 by March 2027, but also lists construction delays, cost overruns, supply-chain problems and permitting as risks.

Management said the aim is to fund completion and related costs, preserve corporate liquidity, limit dilution and support the pursuit of additional customer contracts. Chief executive Michel Amar called it an important step toward completing the campus while limiting dilution for shareholders.

Balance sheet and recent results

The release gave cash of about US$135 million and about US$153 million of capital expenditure year to date, and said no shares were issued under its at-the-market equity programme in the third quarter of 2026. The company filed a registration statement with the SEC on 11 September 2026 covering a securities offering.

In its second-quarter report on 14 August 2026, the company reported revenue of about US$6.6 million and a net loss of roughly US$14.4 million, with cash of about US$150 million and no debt. It recorded first AI compute revenue of about US$1.1 million from roughly five weeks of GPU bare-metal operations. It cited contracted AI data-centre revenue of about US$1.1 billion and potential total contract value of about US$2.5 billion. Those contract figures are company statements rather than recognised revenue.

Operations and strategy

The first ARMS 200 modular data centre has been running since May 2026, supporting GPU bare-metal services, and a partnership with Super Micro Computer (NASDAQ:SMCI) supports access to NVIDIA (NASDAQ:NVDA) Blackwell GPUs. The company plans to expand its AI token factory infrastructure through its NeoCloudz platform using ARMS systems from US Data Center, Inc., and is planning New York State sites for conversion, as well as having acquired an office and laboratory facility in Silicon Valley.

President Alec Amar said the company owns the whole stack from power to data centre to compute.

Alabama financing and the contracted pipeline

The debt financing is the next step for the Alabama campus, with closing within 90 days, Phase 1 by December 2026 and Phase 2 by March 2027 as the stated milestones. The company has also said no shares were issued under its at-the-market programme in the third quarter of 2026.

Trailing twelve-month revenue is about US$31.4 million, down 2.5 per cent, and full-year 2025 revenue was US$34.19 million. Set against contracted AI data-centre revenue of about US$1.1 billion and potential total contract value of about US$2.5 billion, that shows how far the contracted pipeline remains from current revenue.