Digi Power X Accelerates AI Data Center Expansion, Projects Strong Fiscal 2027 Growth
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Digi Power X Accelerates AI Data Center Expansion, Projects Strong Fiscal 2027 Growth

authorBy Vicki Robin
DateJul 07, 2026
Read Time3 min

Digi Power X, a leading operator in AI data center infrastructure, has outlined its strategic financial projections for fiscal year 2027. The company anticipates achieving an annualized run rate between $250 million and $300 million across its three core operating divisions. This optimistic outlook is underpinned by the significant progress of its dedicated AI data center campus, with key phases of development moving forward as planned. The firm's commitment to innovation extends to its GPU-as-a-Service offering, NeoCloudz, which is poised for substantial scaling, further diversifying its revenue streams.

A major driver of Digi Power X's projected success is its AI colocation business, which is forecast to contribute between $80 million and $100 million to the fiscal 2027 run rate. This contribution is expected as Phase 1 of its specialized AI data center campus completes a full year of operation, and Phase 2 begins its operational contributions after an anticipated commissioning of 40 MW. The company's overall strategy targets an aggregate of 90 MW in AI colocation capacity for fiscal 2027, with the potential to elevate total colocation revenue to approximately $200 million.

Furthermore, the NeoCloudz GPU-as-a-Service platform is poised for significant expansion, aiming to deploy around 10 MW of capacity throughout the year. Digi Power X projects NeoCloudz to reach an annualized run rate of up to $100 million by year-end, driven by the continuous addition of GPU capacity. Complementing these segments, energy sales are expected to generate an additional $12 million. The construction of the flagship AI data center campus is progressing on schedule, with Phase 1 anticipated to be ready for service by December 2026, and Phase 2 slated to come online by the close of the first fiscal quarter of 2027. Vertical construction is now underway, with the building shell being erected, and all critical long-lead equipment, including electrical and switchgear infrastructure, has been secured for Phase 1. The company is actively pursuing project-level financing, aligning with its preference for non-dilutive debt, with further details to be disclosed upon finalization of definitive documentation. To bolster the growth of NeoCloudz, Digi Power X plans to inaugurate a Silicon Valley office by August 2026, alongside establishing a dedicated engineering team.

Michel Amar, CEO of Digi Power X, emphasized the team's unwavering focus on achieving these milestones, advancing the AI data center campus, scaling the NeoCloudz platform, and developing the essential Tier 3 infrastructure required to meet the accelerating demand for AI compute. Paul Ciullo, CFO, reaffirmed the company's strong financial position, noting its ability to self-fund its rapid expansion. As of July 2026, the company possesses approximately $155 million in cash and cash equivalents, with no long-term debt, and has allocated roughly $95 million in year-to-date capital expenditures towards its Columbiana, Alabama campus, demonstrating robust financial health and strategic investment in future growth.

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