Duos Technologies has raised $40 million to grow its Edge data center business, Duos Edge AI.

The Jacksonville, Florida-based company, which specializes in railway technologies, has sold 6.6 million shares at a price of $6 per share in what it describes as an "upsized, oversubscribed" stock issue.

Buyers included a long-only mutual fund, several preeminent global investment managers, and existing investors, Nasdaq-listed Duos said.

Titan Partners Group, a division of American Capital Partners, acted as the sole bookrunner on the offering, which closed on August 1.

“We are excited to announce this offering and the strong support from both new and existing investors,” said Charles Ferry, CEO of Duos Technologies. “Their commitment reflects confidence in Duos’ future and the transformational growth we are now positioned to unlock, with a strong cash position and accelerating demand from our Edge data center customers.”

Duos founded its Edge data center subsidiary last year, raising an initial $2.2m in funding. The new business is led by EdgePresence and Colo5 founder Doug Recker, and the company’s Edge data centers contain 15 cabinets housed in a 55ft by 13ft (13m by 4m) pod and are reportedly able to support up to 100kW per rack.

It deployed an Edge module at the Region 16 Education Service Center in Amarillo, Texas, last year, serving 60 school districts and three charter schools with 226 campuses across a 26,000 square-mile area.

More recently, in May 2025, Duos supplied a data center to another Texas school district in Victoria, and announced it is setting up two pods in another city, Corpus Christi.