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Digi Power X Lands $19.6 Million Blackwell Capacity Deal

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Digi Power X signed a $19.6 million, 24-month agreement with SubQ AI for bare metal Nvidia Blackwell GPU capacity, but did not identify which data center will host the deployment.

Verified against source materialEdited by SendTech Times Cloud & Infrastructure DeskSource: Data Center Dynamics
Digi Power X Lands $19.6 Million Blackwell Capacity Deal
Image source: Data Center Dynamics

Digi Power X Turns AI Capacity Into A Named Contract

Digi Power X is converting its AI data-center pitch into contracted revenue through a $19.6 million SubQ AI deal for bare metal GPU capacity, giving the company its first named multi-year customer for an AI factory business built around owned power and data-center sites.

The 24-month agreement starts on May 15, 2026.

Digi Power X will provide access to Nvidia Blackwell GPUs through its NeoCloudz GPU-as-a-Service platform, and SubQ AI has paid $2.95m upfront.

The company did not identify which data center will host the capacity.

Digi Power X says it operates facilities in Alabama and New York state, with another site under development in North Carolina.

The location gap matters operationally because AI customers buying bare metal capacity still need to know where power, cooling, networking and physical deployment risk sit.

The contract confirms revenue, but not the precise site that will absorb the load.

SubQ AI Wants Several Thousand GPUs

Digi Power X president Alec Amar called the agreement the company’s first contracted AI revenue and the commercial launch of NeoCloudz.

He said Digi Power X intends to expand the relationship with SubQ AI and is discussing additional hyperscale and frontier AI customers.

SubQ AI chief executive Justin Dangel said the initial deployment is meant to lead into a larger relationship.

He said SubQ AI expects the relationship to grow to several thousand GPUs within the coming quarters while it develops its proprietary architecture.

Dangel tied that expansion plan to NeoCloudz’s bare metal platform, Nvidia Blackwell silicon and Digi Power X’s owned power and data-center capacity.

The deployment gives the AI infrastructure story a narrower proof point than a general capacity announcement.

Digi Power X has a named customer, a contract value, an upfront payment and a stated hardware family.

The public record still lacks workload benchmarks, power draw, network terms or the specific facility that will serve SubQ AI.

Crypto Sites Move Toward AI Factories

Digi Power X is part of the wider shift from crypto-mining infrastructure toward AI and high-performance computing.

The company’s earlier business centered on cryptocurrency mining, including mining hardware colocated at power plants for its own use and for other companies.

In 2025, Digi Power X set up US Data Centers as its AI and HPC-focused subsidiary.

It also described plans to work with Super Micro on customized B200 GPU rack solutions at its Alabama data center.

Digi Power X puts its current hardware position at 10 GPU pods and up to 4,000 Blackwell B3000 GPUs.

Digi Power X bought the Columbiana property from Grede II, LLC in June 2022 for $2.75 million.

The Alabama asset included 160,000 sq ft (14,864 sqm) of office and industrial warehouse space, while the company also owns and operates sites in Buffalo and North Tonawanada in New York.

The unresolved infrastructure detail is where SubQ AI’s first paid Blackwell deployment will land.

Digi Power X has a two-year contract and an upfront payment, but the data-center site, power allocation and production workload profile remain undisclosed.

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