Wafer-scale chip company and cloud provider Cerebras has signed on to lease 40MW of capacity from a Digi Power X data center in Columbiana, Alabama.

The contract will run for an initial term of 10 years, valued at $1.1 billion, and has the potential to be extended up to a total value of $2.5bn.

The data center itself is still under development, with Digi Power X set to deliver the data center in two phases: phase one with 15MW of IT load, and phase two to deliver 25MW incrementally for a total IT capacity of 40MW. The phases will be delivered by the end of 2026 and the end of Q1, 2027, respectively.

The data center will be built according to Tier III infrastructure standards.

Digi Power X's chairman and CEO, Michel Amar, said: "This agreement is transformational for Digi Power X. Signing a $1.1 billion anchor contract with a premier AI compute company is validation of everything we have built - our team, our sites, our infrastructure capabilities, and our vision for what a next-generation data center operator looks like. We are no longer building toward the top tier of this industry. We are in it."

Construction on the data centers is set to begin immediately. Digi Power X has already established an on-site substation to serve the first phase, and owns the underlying real property. The first phase is being self-funded by Digi.

"This deal is a statement. Closing a contract of this magnitude with one of the prominent emerging companies of the AI era signals Digi Power X is a serious player operating at the highest level. This is the kind of landmark transaction that we believe will open the door to additional sophisticated tenants, lenders, and partners," added Alec Amar, president of Digi Power X Inc.

Digi Power X acquired the Alabama site, in Shelby County’s Columbiana, in June 2022 from Grede II, LLC for $2.75 million. The site came with 160,000 sq ft (14,864 sqm) of office and industrial warehouse space. Digi Power X owns and operates three existing data center sites across Columbiana.

The contract secured with Cerebras comes just weeks after Digi Power X revealed it had secured SubQ AI as a customer at one of its data centers for bare metal GPU capacity.

The company currently has data centers operating in Alabama and New York state, as well as a site under development in North Carolina.

Formerly known as Digihost, Digi Power X was previously focused on mining cryptocurrencies and placing mining hardware at power plants for itself and other companies.

Cerebras has also had a busy few months, having filed to go public in April 2026. In its IPO filing, the company reported $87.9 million in net income on $510m in revenue during 2025. Revenue was up 76 percent from 2024 - with Cerebras reporting a $485m net loss at the time. In January, the company announced a $10 billion deal with OpenAI. The generative AI company will use some 750MW of computing power delivered through 2028. OpenAI could buy an additional 1.25GW through 2030.

This February, Cerebras raised $1bn at a $23bn valuation.

Cerebras has inference clusters live in Santa Clara and Stockton, California (the latter at Nautilus’ floating barge facility), and Dallas, Texas. The company is rolling out clusters in Minneapolis, Minnesota, and works closely with G42, including on a supercomputer in India.

In Canada, the company is set to lease capacity in Montreal at a Bit Digital facility, and in Saskatchewan and Manitoba from Bell. The firm is planning a large-scale deployment in Guyana.