Azio AI is set to deliver 5MW of modular data center capacity to a site in South Texas.

It will supply the modules to Envirotech Vehicles for its campus, which will utilize behind-the-meter natural gas power.

As reported by DCD in January, Envirotech, an electric vehicle company that is in the process of pivoting to AI infrastructure, has signed a non-binding letter of intent (LOI) to purchase Azio AI in a $480 million merger-acquisition. The companies said they have yet to reach a “definitive agreement” on this deal.

"Since the signing of our LOI, we have been excited to further understand and validate the meaningful synergies between our organizations, particularly at the intersection of energy infrastructure and AI compute deployment," said Chris Young, CEO, Azio AI.

"Over the past several months, we have conducted infrastructure testing utilizing behind-the-meter natural gas power, which has demonstrated promising efficiency characteristics. As we deepen our collaboration, we believe these efforts are helping to inform potential next steps in our strategic relationship, subject to customary considerations."

Azio had previously installed a 500kW data center module at the Texas site, which is colocated at an operational oil field that produces on-site natural gas.

The company provides enterprise GPU servers, AI compute clusters, modular data infrastructure solutions, and sovereign compute services. It is a spin-out of Azio Corp, which makes keyboards and other PC hardware.