Digi Power X signs $19.6M GPU rental agreement with SubQ AI

Digi Power X signs $19.6M GPU rental agreement with SubQ AI Proactive uses images sourced from Shutterstock

Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) announced that it has signed a 24-month GPU rental agreement valued at $19.6 million with SubQ AI, a company focused on next-generation AI technologies.

Under the terms of the agreement, Digi Power X will provide SubQ AI with dedicated access to a fleet of the latest-generation NVIDIA Blackwell GPUs. The systems will be delivered on a bare metal basis through NeoCloudz, the company’s GPU-as-a-Service platform, and hosted at Digi Power X’s AI data center.

The infrastructure is designed according to NVIDIA’s reference architecture and built to Rated 3 standards. The facility includes redundant utility feeds, N+1 uninterruptible power supply (UPS) systems, and a two-loop cooling setup using coolant distribution units and chillers, intended to support high-density computing workloads.

The agreement includes an upfront payment of $2.95 million, representing 15% of the total contract value. The remaining balance will be invoiced monthly under Net-15 payment terms.

This contract represents Digi Power X’s first reported revenue tied to AI operations and signals the operational launch of its AI-focused infrastructure. It also marks the first multi-year deployment on the NeoCloudz platform involving a named customer.

Digi Power X has secured capacity for approximately 4,000 NVIDIA Blackwell B300 GPUs across multiple infrastructure pods, which it estimates could generate up to $120 million in annualized revenue at full utilization. SubQ AI has indicated plans to expand its GPU usage to several thousand units, aligning with this projected capacity.

The deployment will provide SubQ AI with exclusive, non-virtualized access to the GPU systems, including root-level control over hardware and networking resources via a high-speed InfiniBand or RoCE v2 fabric.

Digi Power X stated that the vertically integrated model, operating within its own data center infrastructure, may support margin retention through control of power and real estate assets.

"This agreement with SubQ AI represents a major milestone for Digi Power X - our first contracted AI revenue and the official commercial launch of our NeoCloudz bare metal GPU-as-a-Service platform,” Digi Power X president Alec Amar said.

“This deal is just the beginning. We intend to rapidly scale our relationship with SubQ AI and welcome additional high-growth AI customers onto our dedicated Blackwell fleet.”

Justin Dangel, SubQ AI CEO, described this initial deployment as the first step in what it expects to be a much larger, long-term relationship with Digi Power X.

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“Our roadmap calls for scaling to several thousand GPUs over the next few quarters as we advance our proprietary architecture, and the combination of NeoCloudz's bare metal platform, the newest NVIDIA Blackwell silicon, and Digi Power X's owned power and data center capacity gives us a credible runway to grow into that footprint with a single, trusted infrastructure partner,” Dangel said.

Shares of Digi Power X gained over 7% on Monday morning following the announcement.

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