A new 40 MW artificial intelligence data center campus in Columbiana, Alabama is moving into the construction phase following a long-term colocation agreement between Digi Power X Inc. and Cerebras Systems valued at approximately $1.1 billion. The project will be delivered in two phases and is designed to support high-density AI computing workloads, with initial capacity expected to come online in late 2026. The agreement provides the commercial framework for the buildout while construction activities begin immediately on the purpose-built facility.

 

Under the agreement, Digi Power X will develop and operate the facility over an initial 10-year term, with total contract value potentially reaching up to $2.5 billion including renewal options. The campus will be purpose-built to Tier III standards and engineered for the power density and cooling demands of next-generation AI accelerator systems.

Development phases

The development plan includes two phases: Phase 1 will deliver 15 MW of IT load, while Phase 2 will add a further 25 MW, bringing total capacity to 40 MW. Phase 1 is targeted for readiness by December 15, 2026, with full deployment expected by the end of the first quarter of 2027.

The project is designed as an AI-optimized facility, reflecting the shift in data infrastructure toward high-performance computing. As noted in the release, the Columbiana campus is being “purpose-built around the power density and reliability demands of frontier AI compute,” highlighting its focus on supporting advanced AI workloads rather than conventional cloud applications. In practice, this means the facility is engineered for much higher power loads, advanced cooling requirements, and dense GPU-based computing environments needed to run large-scale AI models efficiently and continuously.

This project also aligns with broader momentum in U.S. AI data center development, including buildouts such as Applied Digital’s continued construction of its third AI data center at the Polaris Forge 1 campus in Ellendale, North Dakota, which recently secured new financing. Together, these developments highlight how the sector expands through a mix of secured project financing and long-term customer commitments that drive large-scale AI infrastructure forward.

Construction underway

Digi Power X has confirmed that construction begins immediately, supported by prior site readiness work that includes a completed on-site substation and finalized grid interconnection agreement with Alabama Power. The company also noted that ownership of the underlying land provides a balance-sheet-backed development structure, reducing reliance on leased infrastructure models.

 

The Columbiana site benefits from established power infrastructure, favorable regulatory conditions, and proximity to key fiber routes serving the southeastern United States. These advantages support a faster delivery timeline compared to typical large-scale data center developments.

 

Management described the agreement as a foundational milestone for the company’s AI infrastructure strategy, positioning the campus as a long-term revenue-generating asset anchored by a committed customer from day one of operations.

 

Revenue from the facility is expected to begin in late 2026, with a gradual ramp-up as additional capacity comes online. The agreement also includes an expansion option that could increase total value by an additional $1.4B, depending on future demand.

 

The project reflects continued growth in dedicated AI infrastructure development as demand for high-performance compute capacity accelerates globally.

Factsheet: Digi Power X New Columbiana AI Data Center Project

Project: 40 MW AI Data Center Campus (Columbiana, Alabama)
Location: Columbiana, Alabama, USA

Parties:

• Digi Power X Inc. (developer/operator)
• Cerebras Systems (anchor customer)

Commercial Agreement:

• Long-term colocation Master Services Agreement
• Initial value: $1.1 billion
• Potential total value: up to $2.5 billion (including renewals)

Project Scope:

• Purpose-built AI data center campus
• Designed for high-density AI workloads
• Tier III infrastructure standard

Capacity:

• Total: 40 MW IT load
• Phase 1: 15 MW
• Phase 2: 25 MW

Timeline:

• Construction start: Immediate
• Phase 1 ready-for-service: December 15, 2026
• Full buildout: Q1 2027

Infrastructure Status:

• On-site substation completed
• Grid interconnection finalized
• Power agreement in place with Alabama Power
• Company-owned land

Commercial Impact:

• Revenue expected to begin: Late 2026
• Anchor tenant secured from day one of operations
• Expansion option: up to $1.4 billion additional value

Development Structure:

• Two-phase buildout
• Self-funded Phase 1 construction
• Long-term colocation model for AI compute services