Digi Power X AI Revenue Tops $5.66 Million as Cerebras Site Nears Billing

Digi Power X reported third-quarter revenue of $12.25 million, up 85% from the second quarter and 50% year over year, with AI revenue jumping more than 400% quarter over quarter to $5.66 million. AI work now accounts for 46% of total revenue, against none a year earlier, as the company's Columbiana, Alabama data center built for Cerebras approaches first billing.

The AI segment splits into Tier III colocation revenue of $3.20 million and GPU rental revenue of $2.46 million through its NeoCloudz unit. Legacy bitcoin activities fell to roughly 27% of revenue from about 63% a year earlier.

The bottom line was thinner than the headline. Net income of $1.0 million, or 1 cent a share, was "materially supported" by a $7.1 million cryptocurrency revaluation gain and a $1.5 million warrant fair-value gain. Adjusted EBITDA was $0.6 million, and the company posted a GAAP gross loss of $2.41 million.

What happens at Columbiana?

Columbiana Phase 1, rated at 15 MW, is due for tenant access on Dec. 15, with billing to begin in January 2027. The 10-year take-or-pay colocation agreement with Cerebras is expected to pay about $40 million a year on average for Phase 1, or about $402 million in total contract value.

A planned 25 MW Phase 2 would add about $58.5 million a year and lift total contract value to about $1.07 billion if both phases start. Phase 2 remains conditional, including on financing, with tenant access targeted for March 2027.

The company received a commitment letter on Oct. 13 for $200 million of project-level debt syndicated by Goldman Sachs. Closing is expected in the fourth quarter, subject to documentation and lender diligence. The facility has not closed.

Digi Power X ended September with $119.6 million in cash and digital currencies and no borrowings. That balance fell from $142.4 million in the second quarter.

How did the quarter compare?

The growth marks a sharp turnaround from earlier periods:

$ millions	Q3 2025	Q2 2026	Q3 2026
Revenue	8.1	6.63	12.25
AI revenue	0	1.08	5.66
Net income	0.1	-14.36	1.0

Second-quarter results included a $14.36 million net loss. The swing to positive net income in the third quarter depended heavily on non-operating crypto and warrant gains rather than gross profit.

Where does the money go next?

The company plans about $350 million of capital spending in 2027, mainly for about 10 MW of AI inference capacity and Columbiana Phase 2. It intends to fund the program mostly through customer deposits and debt.

Management guided to an annualized revenue run-rate of $250 million to $300 million by the end of the third quarter of 2027. About $143 million of that figure is backed by current operations and the Cerebras deal, including the conditional Phase 2. The remainder depends on capacity still in development and ongoing customer negotiations.

The near-term test is execution: Phase 1 handover on Dec. 15, closing the $200 million Goldman Sachs-syndicated facility in the fourth quarter, and converting the conditional Phase 2 into a committed contract will determine whether the 2027 run-rate target holds.